I was fortunate to attend a LIBOR sponsored class entitled, "The Not So Basic Basics of Mortgage Financing".  In it, we learned about qualifying ratios (for too much time).  We received worksheets in order to demonstrate to the buyer, how, after the tax benefit, home ownership is valid.  The numbers were, imo, inaccurate.

We learned, due to an attendee that happens to be a mortgage broker, that March 15th is the "increased loan limits" date to target, that will be a huge help to NY real estate, with FHA potentially becoming available in the (gasp) 700's.  This was a good short interjection from an attendee.

This same attendee mentioned that, from a lender (and appraiser) perspective, Nassau and Suffolk counties in Long Island are considered "declining" markets.  What I gleaned from the class attendee is that as such, appraisals will have to include potential  short term price drops when appraising a property, in addition to the normal appraisal procedures.

What this appears to "mean", and I make no claim to full comprehension, just alarm at a potential problem, is that the selling price of our overpriced listings (or any listing) may have the compromise of a bank that will appraise the property for current market value, MINUS anticipated market decline.  WHAT?

I wanted the lender to go on, but he was not the instructor.  As an attendee, he apologized a few times for "hijacking" (my word) the class.

When the instructor said, "Hey, Colorado, what did you learn today", I had to respond with nothing, nada, zilch.  I explained that the course had left me "uninspired", and she moved along quickly (this is a NY class).  I wasn't mean about it- the truth is, I was blank (other than info provided by the attendee, not instructor).

 Are any NY agents experiencing this "declining market" situation with lenders?