Help on the Way for Myrtle Beach Real Estate Market

Forbes.com recently reported that there was good news coming for the real estate market, and particularly in areas such as California's San Diego and others whose home prices are bordering on the outrageous.

Coldwell Banker's annual Home Price Comparison Index listed areas in all 50 states with average home prices. California was pretty conspicuous in that it was in with only a handful of places where the same home that costs $200,000 - $300,000 all over the country is over a million dollars.

Point being, that a new provision in the Economic Stimulus Act of 2008, Bush's attempt to do something to help the economy, calls for the Government Sponsored Enterprise, or GSE lenders Fannie Mae and Freddie Mac to increase their loan limits to 125% of a city's mediun home price.

If the Coldwell Banker figures are accurate, that would amount to a whopping $312,750 increase to the mortgage cap for Beverly Hills, whose average home was listed at $1,656,500. That is a lot of money for the government's already empty coffers to take responsibility for. It would help San Francisco, whose average is 1.3 million, and Boston at 1.2 million as well.

Previously the government loans had a maximum cap of $417,000, and still won't cover more than $729,750. But that would allow 32% of homes in Los Angeles to be included, and 18% of San Diego. With credit less risky for banks, they will be able to offer more mortgages in this capacity, which right now is badly needed. Since the blow-up of the sub-prime lending, mortgages have toughened to the point of being a hardship on everyone except those with stellar credit and six digit incomes.

And it is good news for the rest of the country as well. The average price of a home in Myrtle Beach, SC is $191,584, according to Coldwell Banker, so now a government guaranteed loan of $239,480 would be possible on that same property, if used as a primary home.

Forbes goes on to say that the provision will help to lower interest rates. Conforming loans will carry lower rates, and will make home buying more affordable, as well as opening the door to re-finances, and hopefully pulling some of the ARM loan victims out of their dilemma.

Perhaps that will limit some of the Myrtle Beach foreclosures, spur the sales of Myrtle Beach condos, and boost the overall beach real estate market.