Homes of the Napa Valley

Serving the North Bay community for over 20 years

707-257-6000
Christine Hannah, Broker /Owner Ca BRE # 01273087

Are Napa Homeowners Renovating to Sell or to Stay?

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Are Homeowners Renovating to Sell or to Stay? | Simplifying The Market

Over the past few years, two trends have emerged in the housing market:

  1. Home renovations have shot up
  2. Inventory of homes available for sale on the market has dropped

 

A ‘normal’ housing market is defined by having a 6-month supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.

According to Trulia 'Napa market trends indicate an increase of $2,750 (0%) in median home sales over the past year. The average price per square foot for this same period rose to $426, up from $404'.

This low inventory in Napa environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.

According to Home Advisor, homeowners spent an average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.

A new study from Zillow asked the question,

“Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?”

Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.

Are Homeowners Renovating to Sell or to Stay? | Simplifying The Market

More and more studies are coming out about the intention that many Americans have to ‘age in place’ (or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.

If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end up changing the identity of the home and impacting resale value, then the renovations may end up costing them more in the long run.

With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this low-competition environment could net you more money than your renovations otherwise would.

Bottom Line

If you are one of the many homeowners who is thinking about remodeling instead of selling, let’s get together to help you make the right decision for you based on the demand for your house in today’s market. Christine Hannah 707.257.6000

Where Are Mortgage Interest Rates Headed in 2018?

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The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search. Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months. Where Are Interest Rates Headed? | Simplifying The Market

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year. If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line 

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home. Spring is a good time to buy as seller's are very motivated to move on. Let me guide you!

Bidding Wars Abound… How Long Will They Continue in Napa Valley?

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Bidding Wars Abound… How Long Will They Continue? | Simplifying The Market Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase. In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner. CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price.
“The share selling above list price was almost three times the trough in January 2008 and represented more than one-fifth of total sales.”
Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price.
“San Francisco had the largest share of homes—76 percent—that sold for at least the list price, and Seattle and Los Angeles followed with 63 and 51 percent, respectively. Miami had the lowest share—16 percent—of homes selling at or above the list price.”
Increased demand during the spring and summer months, the traditionally busier seasons for real estate, will no doubt influence how many homes continue to sell over list price. This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market. Realtor.com gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

Bottom Line

In Napa without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available. If you are thinking of selling your home, now may be the time to do so before more competition comes this spring. Let’s get together to determine the demand for your house in our Napa Valley. Call Christine Hannah, Broker, Realtor at 707-257-6000 to find what is selling or who is buying the Napa Valley.

The Pleasures of Historic Downtown Napa

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Elegant Historic Homes in Downtown Napa

 

Old home

Corner Building

Enjoy a stroll through historic downtown Napa. You’ll find streets lined with old historic trees, some as old as 150 years. You’ll see beautiful mansions surrounded by picturesque gardens, something you might find on the cover of a Home & Garden Magazine. You’ll find gorgeous craftsman homes, dating back before there were smart phones, computers, and yes, even cars! These homes were built with the finest materials, the best craftsmanship, and with the blood sweat and tears of the locals. The streets of Napa tell a story; they tell of the people, places and historic events that occurred here over the last 150 years. Napa is a place of great historic significance coupled with an elegant modern lifestyle. Simply put, Napa is a wonderful place to live!

Napa CA, the 100th Biggest Town in California

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76,915 citizens, Napa is the 100th biggest town by population in California. Source: Wikipedia September 2, 2013.

A Place for the Wealthy

A Place for the Wealthy

Because of the slow and steady growth of Napa it has become a place for the wealthy. Not only has Napa tremendous charm and has also perfect location. The city of Napa is also  nestled in California’s North Bay and stands as the doorway to the beautiful and world-renowned Napa Valley. It’s not a surprise that Napa is on the list of best places to live. Here one finds everything in close proximity. San Francisco, Bay Area, Pacific Ocean, Sacrament, and even Lake Tahoe are perfect targets for day trips.

Napa has culture. According to local historian Lauren Coodley, Napa has roots deep in California history. Napa’s history reaches back to the Bear Flag Rebellion and earlier, indeed to the first contact between Spanish explorers and the Wappo Indians. 

George Yount, originally from North Carolina first ventured into the Napa Valley in 1831. in regards to encounters with Grizzly Bears, he claims, they were everywhere upon the plain, in the Napa Valley and in the mountains, venturing even within the camping grounds, they provided a rich and satisfying meal. George Yount, according to Coodley, played a significant role in the rescue of Donner Pass event. It is said, Yount had a dream ans was therefore able to lead the rescue team to find the Donner Pass survivors.

In the early 1840s, the primary land uses in the Napa Valley were agriculture, then orchard, including timber production, grazing and field crops. It may be a surprise that much later the best use was as we know today is  the wine industry. One of the best grapes in the word is know to grow here.

Napa has charm. Napa’s downtown is filled with Heritage Homes. Old Redwoods and other mature trees that characterize this unique, old world town in the North Bay.