For homeowners weighing the pros and cons of adding their homes to the St. Cloud listings, the ‘pros’ are substantial. The steady national rise in home prices indicates a healthy market—one significant “pro.” The latest national existing-home sales price figures confirmed a median rise of 14.6% over the previous year—the 105^th consecutive month of price gains across all regions.

Another one of the “pros” is a market where competition is relatively light—something that’s been the situation in America for some time. And when the scarcity of existing homes for sale is combined with what might be the strongest “pro”—bargain-basement home loan interest rates—the positives make a strong case for this being a favorable environment for joining the St. Cloud listings.

Even so, there is at least one countervailing “con.” The steady rise in home prices may be terrific for sellers, but it also has the effect of limiting the pool of qualified prospective buyers. But now, a federal agency has stepped in with an adjustment that could empower more buyers.

The action came from the Federal Housing Finance Agency via its annual “CLL” adjustment, which came at the stroke of midnight on December 31. The CLL is trade shorthand for the Conforming Loan Limit, the top-dollar amount allowed by Fannie Mae and Freddie Mac to qualify as one of their “conforming” loans—those which the FHA will reinsure.  Home loans that conform are easier to get since the risk is backstopped by the government entities. As a result, they usually carry lower interest rates than non-conforming loans (the ‘jumbos’).

The CLL limits differ from one county to another, with high-cost areas pegged at higher levels than baseline regions. Since homeowners who add their properties to the St. Cloud listings may intend a move out of our area, the CLL in their future neighborhood could have financial repercussions that affect their decision. Here is a link that lists the new CLLs for each county in the 50 states and territories.

If you will be selling or buying (or both) in 2021, early planning paves the way to success—which means that now is a great time to give me a call!

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

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