Last Friday, 6-21-2007, SILVAR held a special event at Palo Alto Hills Country Club for a special gathering with the President of California Association of Realtors, Coleen Badaglicco. She gave a talk on: Real Estate Future.
One subject about the conforming loan amount, she’s working with legislators both on state and national level is to raise the conforming loan amount higher. And also to urge National leaders to approve conforming loan for different amount by ”metropolitan sizes”. I think this is long past due. National average single family home is only $225,000, for that amount of money, we cannot even buy a toilet in Silicon Valley.
I strongly agree with her. With current conforming loan amount, $417,000, it is really hard to buy single family home in California. America is such a vast land, each city, region has its geographical and civil specifics that make it uniquely different from one another. We will never be able to compare Topeka, Kansas with Honolulu, Hawaii, so why not make the conforming loan amount suit to each individual city for its special character such as living index, income level, city functions, and demographic traits.
I hope the legislators can understand the need of different loan amount. They all came from different cities before they live in Washington D.C. that shall give them some idea of “value”.