First quarter transactions were definitely affected by the mortgage adjustment.

While San Francisco has a unique postion in the national mortgage landscape, we are seeing increased scrutiny when processing loans.

The impact that is trickling down to the San Francisco consumer is a higher down payment requirement. Typically the home buyer is asked to put 20% down as a minimum on a home purchase. That number goes up as the credit score moves downward.

Additionally, we are seeing less opportunity for HELOC's or 2nd's in this new lending environment. As the economic future of the country becomes clearer we will see lenders get more aggressive in attracting new borrowers.

But in the short term I would recommend watching your local employment numbers to anticipate where your area is headed.

Until next time, if you need to reach me email: kglidewell@pacunion.com or visit my website at: http://www.sfluxuryproperties.com/