US offers stimulus package to help key locations

The stimulus package is set to help improve economies and property markets in key locations such as Sacramento, Washington D. C. and San Diego.

The Economic Stimulus Act of 2008 which was signed several weeks ago by President Bush offers an opportunity for some of the country's largest property markets. In the pack, home owners in locations such as San Diego, Sacramento, California as well as Washington D. C. would see improvements in their real estate sector.

These markets have dealt with some of the largest blows in terms of overbuilding – poor loans as well as a large numbers of foreclosures.

The act would offer some help by boosting the sales of properties that have traditionally been too high for government sponsored enterprise lenders such as Fannie Mae and Freddie Mac. The GSE would see loan limits increase to 125% of the city's median property price. While prices were subject to just US $417,000, this number has been temporarily increased to US $729,750.

In the last months, some of the largest property markets have been hurt in the United States because of foreclosure. Banks can not even unload these foreclosed properties because loan applicants can not qualify for them.

The credit crunch seems to be hurting even more so.