Homes of the Napa Valley

Serving the North Bay community for over 20 years

707-257-6000
christinehannah@homesofthenapavalley.com
Christine Hannah, Broker /Owner Ca BRE # 01273087

Housing Market: Another Gigantic Difference Between 2008 and 2018

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Housing Market: Another Gigantic Difference Between 2008 and 2018 | Simplifying The Market

Some are attempting to compare the current housing market to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.

However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.

Housing Market: Another Gigantic Difference Between 2008 and 2018 | Simplifying The Market

A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.

Today is radically different!

There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).

However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.

Housing Market: Another Gigantic Difference Between 2008 and 2018 | Simplifying The Market

Bottom Line

Real Estate will always remain a Demand and Supply business. Are you interested in current trends. Set up an office appointment with Christine Hannah, Real Estate Broker, 707.257.6000

Have You Outgrown Your Starter Home in Napa Valley?

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Have You Outgrown Your Starter Home? | Simplifying The Market

For many Americans, buying their first home is their first taste of achieving part of the American Dream. There is a sense of pride that comes along with owning your own home and building your family’s wealth through your monthly mortgage payment.

It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it’s ok to admit that your home no longer fits your needs!

According to CoreLogic’s latest Home Price Index, prices in the starter home market have appreciated faster than any other category over the last year, at 9.4%. At the same time, inventory in this category has dropped 14.2%.

Have You Outgrown Your Starter Home? | Simplifying The Market

These two stats are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

This is great news if you own a starter home and are looking to move up to a larger home as the equity in your home has risen as prices have gone up. Even better is the fact that there is a large pool of buyers out there searching for your starter home to help them achieve their American Dream!

Bottom Line

If you have outgrown your starter home, call Christine Hannah (Owner/Broker of Homes of the Napa Valley) who can explain the market conditions in your area and help you find your next home!

Did Tax Reform Kill the Luxury Market in Napa Valley?

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Did Tax Reform Kill the Luxury Market? NOT SO FAR! | Simplifying The Market

The new tax code limits the deduction of state and local property taxes, as well as income or sales taxes, to a total of $10,000. When the tax reform legislation was put into law at the beginning of the year, some experts felt that it could have a negative impact on the luxury housing market.

Capital Economics:

“The impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.”

Mark Zandi of Moody’s Analytics:

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

The National Association of Realtors (NAR) predicted price declines in “high cost, higher tax areas” because of the tax changes. They forecasted a depreciation of 6.2% in New Jersey and 4.8% in Washington D.C. and New York.

What has actually happened?

Here are a few metrics to consider before we write-off the luxury market:

1. According to NAR’s latest Existing Home Sales Report, here is the percent change in sales from last year:

  • Homes sales between $500,000 – $750,000 are up 11.9%
  • Homes sales between $750,000 – $1M are up 16.8%
  • Homes sales over $1,000,000 are up 26.7%

2. In a report from Trulia, it was revealed that searches for “premium” homes as a percentage of all searches increased from 38.4% in the fourth quarter of 2017 to 41.4% in the first quarter of 2018.

3. According to an article from Bloomberg:

“Median home values nationally rose 8 percent in March compared with a year earlier, while neighborhoods of San Francisco and San Jose, California, have increased more than 25 percent.

Prices in affluent areas in Delaware and New York, such as the Hamptons, also surged more than 20 percent.”

Bottom Line

Aaron Terrazas, Zillow’s Senior Economist, probably summed up real estate’s luxury market the best:

“We are seeing the opposite of what was expected. We have certainly not seen the doomsday predictions play out.”

Don’t Wait to Sell Your House! Napa Buyers Are Out Now

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Don’t Wait to Sell Your House! Buyers Are Out Now | Simplifying The Market

Recently released data from the National Association of Realtors (NAR) suggests that now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.

Let’s see how this applies to the current residential real estate market.

SUPPLY

Especially in Napa and Solano County, it is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.

Supply is currently very low!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”

Demand is currently very high!

Bottom Line

Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, let’s get together to discuss the conditions in our market.

The Big Game in Tennis (Napa High vs Vintage High)

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Napa Tennis Napa High School vs Vintage High School

Julian Sosa probably thought something like “I got this” before facing Abe Lopez on Thursday.

The Napa High boys tennis team’s No. 5 singles player had beaten Vintage’s Lopez in straight sets in their previous meeting. But that was in early March. Lopez seemed six weeks better this time, stunning Sosa by winning a tie breaker in the first set.

 

With the rest of the singles and all doubles done for the day, the teams were tied at four wins apiece – and the contest was for Sosa and Lopez to decide.

Read on…

Historic Post Office in Napa has Future

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Downtown Post Office

The downtown Napa post office, closed after being damaged in the August 2014 earthquake, is to be developed as a hotel.

 

Watching other projects debut in downtown is encouraging, he said.

“It’s good to have some new traction on First Street,” such as at First Street Napa next to the Archer hotel.

“This project is going to help that retail too. It’s going to put a lot more heads in beds that then frequent First Street Napa and the overall downtown.”

Read on…

 

 

 

A Wonderful 80th Birthday Party for Ron Downs

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A Wonderful 80th Birthday Party for Ron Downs

by Christine Hannah

 

 

Tennis in Napa Loyd Fox

David Roust, team captain at the USTA.

On March 30, 2018, 2 dozen friends came to together to honor Ron Downs on his 80th birthday.  Ron is best known for his tireless efforts in support of the Tennis Club at Napa Valley College.  He and Dr. Rebecca Thompson, a local Clinical Psychologist, have taught tennis for decades at Napa Valley College.

I believe Ron is one of the luckiest gentleman I know.  Last year, he was involved in a car accident and came away with only a scratch.  And then this past Fall, Ron survived a natural disaster as well. Living on top of Mount Vedder was not an ideal place to be when the Napa/Sonoma fires broke out. Ron noticed embers floating over the ridge and within minutes, fires started on both sides of his home.  Ron escaped with only a few of his belongings and drove down Redwood Road as his house burnt to the ground. His friends from the tennis club were there to console him, help out with housing and, of course, provide tennis balls.

I met Ron Downs back in the early 90’s.  In 1995, with Ron’s coaching, I became the number one tennis player at Napa Valley College.  After studying business and tennis at Napa Valley College, I vividly remember that Dr. Thompson, Ron Downs, and Dr. Jerry Somerville had a huge impact on my life.  My performance on the tennis court and in Real Estate skyrocketed. Not only did I meet smart and interesting people on the tennis court, but also realized how much life and tennis had in common.  The Napa Valley Tennis Association provided a great opportunity for exercise, making new friends, and learning that timing has to do with everything… not just in the game, but also in life. With a great combination like that, and great coaching from caring people like Ron, I realized that one can advance to any level in life, business, or sports.

Thank you again Ron and Happy Birthday!  Not only are you one of the most unselfish and giving individuals in our community, but your friends are truly the lucky ones to have known you and called you Friend.

 

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Wonderful 80th Birthday Party for Ron Douw March 30,2018

 

We all came to together to honor Ron Douw’s birthday. He is a true legend.

 

He and Dr Rebecca Thompson, a local Clinical Psychologist are teaching tennis for decades at the Napa Valley College.

 

I think Ron is one of the luckiest Fellows  I know. Lat year he was involved in a car accident he came away with a scratch.This year he survived so many events in his life. He lived on top of Mount Vedder when this year’s fire broke out. He woke up in time and got himself in safety before all his belongings and house burnt down to the ground.

 

His friends from the tennis court were there to help with housing and tennis balls.lol

 

Christine Hannah, at the time (1995) Number 1 tennis player  at the Napa Valley College remembers. Dr Thompson, Ron Douws and Dr Jerry Sumerville had a huge impact on my life. After I studied business and tennis at the Napa Valley College my performance in  skyrocketed.

Not only did I meet important people on the tennis court, i realized how much life and tennis have in common. Additionally finding new friends, leaning the integrity of the game but also how much timing has to do with everything. Just  Golf, tennis is a mind game. If you are powerful, have integrity and focus, you can enhance into any level of life, business and sports.

 

Napa Fires are Shaping our Future? (video)

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Napa News: It’s been six months since three separate fires converged on Napa Valley, destroying more than 600 buildings, most of the homes. Now that the dust has settled and most of the debris has been removed, the community is rebuilding but it’s been a slow process.

The night of the fires, Oct. 8, is one that Adrian Gonzales won’t soon forget. “Everything was dark and smoky. You couldn’t see anything really,” recalled Gonzalez, as he stood on the pristine green lawns of Silverado Resort and Spa. Read on…

St. Helena’s Las Alcobas Napa Valley hotel is for sale

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Las Alcobas Napa Valley, the 68-room hotel that opened in April 2017, is for sale.

CBRE Hotels, a real estate company specializing in hotels, lists Las Alcobas as an “exclusive, luxury acquisition opportunity in the heart of the Napa Valley.” The brochure doesn’t disclose an asking price.

The hotel is on Highway 29 just south of St. Helena’s elm tunnel. It includes chef Chris Cosentino’s Acacia House restaurant.

 

It offers rooms with terraces with views of the adjacent 200-acre Beringer vineyard. The property has 3,900 square feet of meeting space, a spa and swimming pool.

Aerial view

 

Las Alcobas Napa Valley, the 68-room hotel that opened in April 2017, is for sale.

CBRE Hotels, a real estate company specializing in hotels, lists Las Alcobas as an “exclusive, luxury acquisition opportunity in the heart of the Napa Valley.” Christine Hannah:”The brochure doesn’t disclose an asking price.”

The hotel is on Highway 29 just south of St. Helena’s elm tunnel. It includes chef Chris Cosentino’s Acacia House restaurant.

It offers rooms with terraces with views of the adjacent 200-acre Beringer vineyard. The property has 3,900 square feet of meeting space, a spa and swimming pool.

Read more…

Napa House Prices: Simply a Matter of Supply and Demand

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House Prices: Simply a Matter of Supply & Demand | Simplifying The Market Why are home prices still rising in Napa? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of “supply and demand” which is defined as:
“the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”
When demand exceeds supply, prices go up. This is currently happening in the residential real estate market. Here are the numbers for supply and demand as compared to last year for the last three months (March numbers are not yet available): House Prices: Simply a Matter of Supply & Demand | Simplifying The Market In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.

Bottom Line

The reason Napa home prices are still rising is because there are many purchasers looking to buy, but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick. Call or email for current trends inside Napa and the Napa Valley.