Because of fear of descending prices, buyers with less than 10% down may find themselves unable to buy. A lender friend of mine told me yesterday that the secondary mortgage market (the folks who buy your loans so that your lender has more money to give out) is no longer financing more than 90% of homes in the most of the Greater Boston area.
Check with your lender for more information.
This could have a very serious effect on the demand for housing. Many people have not saved enough for a 10% down payment for our high-priced market.
The positive: lower demand is better for buyers who are able to buy.
The negative: more people will be shut out of the market because of these changes.
If you are affected by this, or have an opinion, please jump in!