An Insider's Guide to North San Diego County's Coastal Real Estate
Jim Klinge, broker-associate
617 Saxony Place, Suite 101
Encinitas, CA 92024
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Jim Klinge
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701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011

Posted by on Nov 27, 2018 in Actives/Pendings, Jim's Take on the Market, North County Coastal, NSDCC Pendings, Tax Reform | 4 comments | Print Print

Fannie/Freddie Limit up to $726,525

Today the FHFA announced that they have raised the Fannie/Freddie mortgage limit to $726,525 in high-cost areas:

Link to Article

With deductible mortgage interest now capped at $750,000 by the I.R.S., buyers who are concerned about write-offs will want to keep their new loan balance in the $700,000s.

The strict equation is $750,000/80% = $937,500.

If buyers find a house priced higher, they could come up with more cash to make up the difference, or they could get a jumbo loan at roughly the same interest rate and live with the non-deductible interest paid on the loan amount above $750,000.

It makes the ideal purchase price in the $1,000,000-$1,100,000 range.

If the tax reform is a big concern for buyers as some have suggested, the homes priced in the $1,100,000 – $1,500,000 might feel it.  Buyers above that range weren’t expecting as much benefit anyway, and probably won’t be as impacted – but theoretically there are fewer buyers the higher we go.

Out of curiosity, let’s keep an eye on the NSDCC stats.

Today’s NSDCC Actives and Pendings:

$700,000-$1,100,000: 121/72 = 1.68

$1,100,000-$1,500,000: 157/75 = 2.09

$1,500,000-$2,500,000: 243/81 = 3.00

$2,500,000 and higher: 399/44 = 9.07

The market has been healthy up to $1,500,000 roughly, and like Rob Dawg said yesterday, potential buyers may not know the exact impact of the tax reform until they start on their 2018 tax returns in spring.

Let’s come back then and check for impact!


  1. Oh geez just heard that San Diego didn’t get the max bump. New limit is $690,000 for SD County.

  2. Contra Costa County got the full bump to $726,525, and even Ventura County was pushed to $713,000 – we’re just as good or better than them!

    But yes, it’s $690,000 for SD Co.

  3. Ventura County was pushed to $713,000 – we’re just as good or better than them!

    We have the Rams. You don’t even have the bolts anymore.

    Honestly, I think it is a case of VenCo having so little low end housing that the median and average are distorted.

  4. We have the Rams. You don’t even have the bolts anymore.

    Yeah well we got the Padres, so take that! They promised to be a contender in just a few more years!

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