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.