THE SKY IS FALLING THE SKY IS FALLING! The whole entire Las Vegas real estate market is going to CRASH and burn in 2014 because FHA announced on December 6 that FHA mortgage loan limits will be significantly reduced on January 1, 2014. This gave buyers, sellers, lenders & mortgage officers almost ZERO notice in real estate transaction management time terms.
The Las Vegas area FHA mortgage loan limits are currently $400,000 and will be reduced to $287,500! That’s a pretty hefty reduction of over 6 figures so there are going to be some people out there crying that the sky is falling and the Las Vegas real estate market is SOL.
NOT TRUE. In the last 12 months (from December 9, 2013,) there have been 39,399 Las Vegas resale homes sold in the GLVAR MLS. Of those 39,399 units sold only 5,521 were FHA mortgage loans. Of those FHA mortgage loans only 462 were above the new $287,500 FHA mortgage loan limit threshold. That represents 1.1% of the total sales.
Tell me, is taking away 1.1% of our market going to make or break the Las Vegas real estate market? If anything will hurt the market it will be large fluctuations with mortgage rates & big cash hedge funds exiting this town due to rising prices. (It’s already happening and has been for months.)
Las Vegas is still a bargain! Take a peek at Las Vegas homes priced under the FHA mortgage loan limit of $287,500:
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