Posted March 6, 2013Tweet
MarketWatch recently published its Most Expensive Neighborhoods In The U.S. list.
Not surprisingly, many of the nation's "most expensive neighborhoods" are in California. Many of the rest have ties to New York City.
An Aspen, Colorado suburb fills out the Top 10.
There were few listed eligibility criteria for the MarketWatch list.
Compiled using data from REALTOR.com and 24/7 Wall Street, the MarketWatch tracked average home listing prices in a given area; changes in home listing prices over one month in that area; and, changes in listing prices over one year in that area.
Located just 15 miles from midtown Manhattan, Alpine, New Jersey was deemed the nation's most expensive neighborhood. It's annual income is double the national average and its home
The complete Top 10 list of expensive neighborhoods nationwide is :
No midwestern towns made the cut, nor did homes in posh parts of Miami, Florida; Scottsdale, Arizona; or Seattle, Washington.
The good news for home buyers in "high cost" towns is access to "high cost" mortgages via Fannie Mae and Freddie Mac, and via the FHA and VA. High-cost home loans are a relatively new product, introduced in 2009.
Prior to 2009, homeowners in "expensive" parts of the country could not get financed via government-backed sources. This is because conforming mortgages were limited to a loan size of $417,000, and FHA and VA loan sizes were similarly restricted.
Jumbo mortgages, therefore, were used; providing the financing outlet million-dollar buyers often sought.
Late last decade, though, with banks facing an uncertain future, many did away with their respective jumbo products, leaving buyers in high-cost towns without the means to get a mortgage for more than $417,000.
Then came the 2009 American Recovery and Reinvestment Act. In it, Congress instructed Fannie Mae and Freddie Mac to raise their respective loan limits in areas in which home values handily exceeded the national average.
Still today, home buyers in high-cost areas get access to jumbo-conforming mortgages.
All ten listed cities in the MarketWatch report are considered "high-cost" areas.
Jumbo-conforming mortgages are available with low mortgage rates, as are jumbo mortgages which exceed the limits as set forth by the government.
To see for what you qualify, get started with a loan limit lookup for your county. Then, see today's mortgages.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2014 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.