Napa Valley home prices rose 4.3 percent in the first six months of the year. That info comes from recent data compiled by the Bay Area Real Estate Information Service (BAREIS), which provides Multiple Listing Services to approximately 7,500 real estate professionals in Northern California. The info was featured in a recent article in the Napa Valley Register.
“This is all very good news,” said Peter Allen, instructor of economics at Napa Valley College. He went on to say, compared to other metro areas, the Napa County Real estate increase is one of the highest in the country.
“We got hit pretty hard” during the recession, he commented. Today, “we’re recovering. A strong rise in the main asset of most households is going to affect discretionary spending.” And when real estate assets appreciate, “it helps the whole economy.”
Although Zillow real estate data service reports that the median price of a Napa County home has not quite reached pre-recession levels, the market has recovered dramatically since its lowest point. And we have to keep in mind that Napa County is notorious for ‘off market’ sales, particularly in the high end that are not included in data from Zillow or BAREIS.
“This market has got a lot of head space,” says Christopher Thornberg, founding partner of Beacon Economics. “The economy is on fire, and a lot of money is being made and that pushes demand.” He goes on to say, from an economic standpoint, “everything you are seeing in the [real estate] market makes sense.”
“This market is going to run for a few years,” Thornberg added. “Will it overshoot the other way? Maybe,” but not like the last real estate cycle. That boom and bust was “singularly unique because of the complete collapse of the mortgage market.”
“If you are thinking about buying a home, don’t think prices are going to come down,” said Thornberg. “Don’t wait.” The leading economist went on to say that Napa Valley will always be a desirable place to live. “You are still top dog. It’s a luxury market at many levels. And tourism is coming back in a big way. Hotels and restaurants are busy. Napa will see better times over the next couple years as more energy from the Bay Area spills up there.”
All this good news is evident when you take a look at the Sold Properties page of my website. Check out the Active Listings page of my site. In addition to what you see there, I have and am aware of several confidential Offerings. While Napa Valley home prices continue to rise, now is the perfect time to list your property in Napa or Sonoma. Please contact me at 707-738-4820 or email [email protected].
