In California, we are concluding the worst summer buying season in the last 5 decades. One could say that this was the worst summer buying season EVER, since record keeping started 5 decades ago.  As we head into the historically slow winter months with no recovery in sight, we face another depressing fact. After September 30th,  the government will lower the size of the home loans they guarantee. The result will be higher closing costs and bigger down payments. In Los Angeles and Orange Counties, for example, the FHA guaranteed loan amount is currently $729,900. That will be reduced to $625,500. The President of the California Association of Realtors, Beth Peerce, has prompted all of us Realtors to write to our legislators in an attempt to try to stop this from happening. She commented that she can't believe that our Congressmen and Senators don't realize how seriously this will effect California's already depressed real estate market. "This will kill us.", she said. The high balance loan limit has been in place for 3 years and has been the lifeline that has kept the housing market afloat. The next 12 months is going to be interesting unless the loan limit is extended.