Homes in Fremont: A Realtor’s View

There’s been a lot of discussion among the media, economists, and even us real estate agents in Fremont, about what President-elect Obama will do about the housing market.  Based on a review of Obama’s previous legislative record, senior leaders of National Association of REALTORS stated that Obama has generally supported legislation favorable to homeowners. Fore example, while in Illinois, Obama supported tax credits for property owners. As a U.S. senator, he’s argued for a stronger Federal Housing Administration (FHA) and voted for the economic stimulus bill that increased loan limits in high-cost areas, like Fremont.

From a Bay Area real estate perspective, I believe increasing the FHA-backed loan limit is really important. The 2008 conforming jumbo loan limit in the Bay Area is $729,750, making it difficult for buyers of higher-end properties to get financing. This limit expires on December 31, 2008, when the lower conforming loan limit of $625,500 takes effect. It certainly explains why higher sales volume has recently been in the mid-range properties. For example, in September, the median price of a home sold in Alameda County was $389K, vs. $555K the previous September. Simply put, the more difficult financing environment has resulted in more unsold inventory (less sales) in higher-end properties, but more sales in mid-range properties, where loans are more easily available.