New Loan Limits: Good News for Buyers and Sellers

Lots of exciting things happen this time of year. Holiday celebrations and parties are in full swing,
holiday lights make everything festive and bright, kids (and parents, too) look forward to some much-
needed time off from the school schedule during winter break, and the Federal Housing Finance Agency
announces the new conforming loan limits for the coming year. Now, you may not think that
announcement is all that exciting, but buyers looking to buy are most certainly thrilled with this news,
and sellers should be, too.
Why is that? In the Denver metro area, the conforming loan limit will increase by approximately $40,000
from $726,200 in 2023 to $766,550 in 2024. Additionally, interest rates have been decreasing and are
expected to continue to do so into 2024. Couple those two things together and that means buyers will
be able to buy more house for the money. Conforming loans tend to have lower interest rates than non-
conforming or jumbo loans; with loan limits increasing and interest rates decreasing, buyers who prefer
to or must stay within the conforming loan limits may be able to increase their price point – and
potentially move into a new tier of previously unattainable inventory – yet still stay within those limits.
The conforming loan limit news is exciting for sellers too. Our inventory is still low however it tends to
increase after the holidays are over and the new year begins. Once the new loan limits take effect, buyers
who have been on the sidelines may return to the market armed with more buying power and ready to
write offers. With little inventory from which to choose, they may find themselves competing again, and
sellers who capitalize on those conditions may find themselves reviewing multiple offers again. The
takeaway here for sellers is not to wait; if you are planning to sell in 2024, consider listing soon after the
new year to get in front of your competition.
It will certainly be interesting to watch how the market plays out in the next few months. Please reach
out with any questions about conforming loan limits or the market in general. And, as always, if you
know someone looking to get into the market please pass along my name – I’m happy to help however I
can!