Super-Jumbo Loans and the Upper End Oakland/Piedmont Market

Bank of America and a few others have jumped back in to the "Super-Jumbo" mortgage lending in a very positive way for the over-$729,000 loans. This should really help the higher priced areas that have been really hard hit by lack of loan availability. These loans have very attractive interest rates - currently in the high 5's with no points! There are some signs that buyers are beginning to respond but unit sales in the over $700,000 segment are still very low in the Oakland/Piedmont area. For example, just half as many homes in this price range this February versus February 2008. In this same segment, the number of homes listed in February was about even with 2008 (28 v. 31) but the median price had fallen by over $230,000. This combination of more accessible loans, great interest rates and significantly declining list prices should result in better sales numbers for March and April. The big unknown is the jobs scene, which has not stabilized yet here in the Bay Area.

My husband and I have been renting since we moved back to California last July because we were living in a new area and wanted to get a feel for the neighborhoods before purchasing. We recently decided which neighborhood we wanted to live in and so I hand-wrote personal notes to the owners of the 17 homes that are not owner-occupied (using the owner's mailing addresses as opposed to the property addresses). One day after mailing them, I received 2 phone calls from owners. One wanted to sell, one to rent (he was looking to replace his current tenant with a higher-paying, multi-year tenant). Two days later, I got another call from a third owner, also wanting to sell. Four days later, I got a call from a fourth owner, also wanted to sell and expressing amazement at the timing of my letter because they had just that week decided that they would not be moving back to the Bay Area and would be selling the home they had been holding on to for that eventuality.

So, we've now toured the one house of the owner who had a reasonable approach to selling it (the other two had purchased near the top of the market and wanted prices above what they had paid at the peak!). It's a lovely home and we're thinking about how to craft an offer that might be appealing to the seller. Stay tuned for the next chapter...

For all of you looking for a truly qualified, ethical loan modification service, I recommend you check out Cary Silberman, J.D. His team will evaluate the borrower's situation first and tell them whether they have a shot at a loan modification. If Cary and his staff think there's no chance, they'll tell you that and not take a dime. If they are very confident that they can get the borrower's loan modified, they'll take it on and only charge a reasonable fee for it. To me, this is a great combination of a valuable free service (initial review of borrower's situation) combined with a well-priced loan modification negotiation service. Here's his blog: http://debtmagician.blogspot.com/

We had a great class with 5 experts sharing about short-sales: negotiation and marketing tips, industry contacts, related resources, pricing strategies, and so much more! We're having incredibly valuable classes several times a week so let me know if you want the calendar. Everyone is welcome (we always include non-KW agents and everyone benefits)!

Inaugural post!

So, I've got my blog up and running (thanks to my whiz of a son, Joseph) and inspiration from Patrick Woods, Keller Williams Team Leader in Sacramento. I'll be posting items of interest to folks who have an eye on the real estate market and industry, as well as professional networking for those of us connected to it. Stay tuned...!