If this new law should pass (raising the conforming loan limit to around $725,000), you can expect a bit of a buying spree in San Francisco, for three main reasons (among many others):
1) Buyers are out there (in droves), and this is just what they needed to get them motivated again.
2) If this is a “limited time offer” as the powers that be are suggesting, many buyers will want to get it while the getting is good, and word on the street right now is that this “proposal” would be good for only one year.
3) San Francisco is, and always will be (barring a major disaster), a solid long term investment. Any short term dips (2-3 years) will be surpassed by long term gains (10-25 years). Ask some folks that bought their homes in Pacific Heights 25 years ago if they’re happy with their “investment”.
This is all, of course, assuming our our nation avoids a major recession (we believe we’re already in a little one), and our market sees an increase in sellers listing their homes (and accepting offers) at reasonable prices.
Flame away. Just don’t tell the foreigners, and don’t hate us for not conforming to all the same bull shit and rhetoric you hear on a daily basis on all the “other” real estate blogs (Curbed not included), because we’re not buying and it’s not because we’re in this for commission.