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In March, Fannie Mae will increase the number of loans it will purchase and guarantee on behalf of individual borrowers.  Currently Fannie Mae guidelines only allow for an individual to have a total of 4 loans guaranteed through Fannie Mae.  The new rule allows for a total of 10 home loans per person.  This will certainly help spur more buying from individuals who are in a position to invest in many properties at very low prices.

The federal government and Fannie Mae are hoping that this will assist in reducing inventory levels nationwide.  Prices are now becoming so affordable in many areas that investors are ready to start buying again. 

The Vilano and South Ponte Vedra Beach area has seen tremendous depreciation (25-50%) over the last 3 plus years, and prices on many homes and properties are amazing in many instances.  Some sellers are still asking prices that they have no hope of receiving because buyers are very savvy in this market and they are looking hard at the most recent comparable sales. Furthermore, appraisers can only use the most current sales of homes or properties that are similar to the one being appraised.  And they are being required by banks to use foreclosures as comparables, when in the past they were allowed to disregard distress sales. 

If we aren't at the bottom in Vilano and South Ponte Vedra Beach, it is likely we are getting very close, because homes are now selling in our area for what amounts to 2002 and 2003 prices in many instances. I'm convinced that now is absolutely the time to buy!