Tuesday, July 1, 2008

WBIR: ASK THE MORTGAGE SPECIALIST: Expensive homes going unsold?

The rates for jumbo loans (loans above $417,000) have caused somewhat of a glut in the real estate market of higher end homes. What's caused these rates to stay steadily higher while rates for traditional loan sizes have seen record lows in the past months?

According to Wikipedia, the definition for a white elephant is "a valuable possession which the owner cannot dispose of, but whose cost (particularly of upkeep) exceeds its usefulness." Hmmm. Sounds like some of the higher priced homes we hear may be sitting on the market a little bit longer than usual. According to the Knoxville Area Association of Realtors (KAAR), the number of homes valued at $500K+ which sold in May 2008 was 34. But there were 205 new listings.

For your home lending needs contact:

Kristin Abouelata

8320 E. Walker Springs Ln #200
Knoxville, TN 37923
(865) 691-8910 office
(865) 567-0113 cell (preferred)
Email: Kristin Abouelata Mortgage Specialist

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