Federal Housing Finance Agency (FHFA) Loan Limits Increased Again for 2025

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FHFA Loan Limits Increased Again for 2025

The Federal Housing Finance Agency (FHFA) has confirmed an increase in loan limits for 2025, marking the ninth consecutive year of adjustments. Effective January 1, 2025, the FHFA will raise the loan limit for government-backed loans to $806,500. Similarly, FHA loans will increase from $498,257 in 2024 to $524,225 in 2025.

This consistent growth reflects the FHFA’s efforts to align loan limits with rising home prices nationwide. Over the years, the average price of homes has climbed steadily, as shown in the attached table. For instance, the average home price in 2024 was $404,500, highlighting the need for the FHFA to accommodate these market dynamics.

The FHFA plays a critical role in ensuring housing affordability by reassessing loan limits regularly to meet the needs of homebuyers. This year’s decision aims to provide greater access to financing options as the housing market continues to evolve.

By adjusting loan limits, the FHFA addresses inflation, home value growth, and affordability challenges, ensuring more buyers can qualify for government-backed loans. These changes emphasize the FHFA’s commitment to promoting homeownership and supporting stability in the housing market.

The FHFA’s 2025 decision underscores the agency’s dedication to addressing housing affordability amid fluctuating market conditions. As buyers and industry professionals adapt to these changes, the FHFA continues to play a vital role in fostering a sustainable and accessible housing market.

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The New Reality of Buyer Agent Compensation

The real estate industry is navigating uncharted territory following the National Association of REALTORS®’ recent policy changes. Offers of compensation have been removed from MLS listings, and buyer agents are now required to sign agreements with clients. This shift has left many agents and brokers adapting on the fly.

RISMedia’s groundbreaking Contract & Commission Study sheds light on how these changes are playing out. Notably, newer buyer agents are facing steep challenges, with those having less than three years of experience managing to secure seller-paid commissions only 47% of the time, compared to 80% for seasoned agents.

John Gillam of EXIT Realty emphasizes the importance of adapting: “You have to have the competence to have the confidence to communicate what it is you do,” he says. While the road ahead may bring more adjustments, leaders like Anthony Lamacchia of Lamacchia Realty remain optimistic, predicting, “Two to three years from now, we will be making more money.”

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Boomer Homes: The Crisis of Accessibility in the U.S. Market

Baby boomers, once beneficiaries of skyrocketing home values, are now grappling with a new challenge: finding accessible retirement housing. With a shortage of affordable, mobility-friendly homes and rising healthcare costs, many boomers are staying in properties that no longer suit their needs.

Jennifer Molinsky from Harvard University’s Housing an Aging Society Program puts it bluntly: “Is it aging in place, or is it stuck in place?” She highlights that restrictive housing laws and community opposition to denser developments have exacerbated the issue. Less than 4% of U.S. homes meet accessibility standards, leaving many without viable options.

As boomers continue to age, addressing this housing gap will be crucial for ensuring a livable and sustainable future for our aging population.

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