Homes of the Napa Valley

Serving the North Bay community for over 20 years

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

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!

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…

Napa has come a long way as a business destination

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As a child the excitement in downtown Napa was to go to lunch counter at Woolworth’s and order a grilled (not boiled or fried) hot dog, really thin fries and “orange” drink that competed with McDonald’s orange drink – neither available in the 21st century. Downtown Napa has come a long way since 1975.

What were once “local” businesses in Napa’s Town Center, like Woolworth’s, Merrill’s Drugstore, McCaulou’s and Miller’s Outpost stores have been replaced with over 325,000 square feet of new construction, now featuring boutiques, wine bars and upscale restaurants by Zapolski Real Estate, which owns the property with Trademark Property Company (www.firststreetnapa.com).

 The Archer Hotel Napa, a five-story hotel hosts 183 guest rooms is now open. As reported here in years past, this project has endured major setbacks: the October 2017 wildfires in Napa, the August 2014 earthquake, and heavy rains last winter and spring that delayed construction.

Let this now be your guide to shopping in downtown. Read on…

 

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.

99% of Experts Agree: Napa Home Prices Will Increase

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99% of Experts Agree: Home Prices Will Increase | Simplifying The Market

Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on residential real estate prices in 2018. However, the clear majority of recently surveyed housing experts believe that home values will continue to rise this year.

What is the Home Price Expectation Survey?

Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment & market strategists. Those surveyed include experts such as:

  • Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP
  • Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics
  • David Downs, Real Estate Finance Professor at VCU
  • Edward Pinto, Resident Fellow at American Enterprise Institute
  • Albert Saiz, Director at MIT Center for Real Estate

Where do these experts see home values headed in 2018?

Here is a breakdown of where they see home values twelve months from now:

  • 21.6% believe prices will appreciate by 6% or more
  • 71.6% believe prices will appreciate between 3 and 5.99%
  • 5.7% believe prices will appreciate between 0 and 2.99%
  • Only 1.1% believe prices will depreciate

Bottom Line

Almost ninety-nine percent of the top experts studying Napa's residential real estate believe that prices will appreciate this year, and over 93% believe home values will appreciate by at least 3%.

5 Reasons Why to Sell This Spring in Napa!

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5 Reasons Why to Sell This Spring! | Simplifying The Market Here are five reasons listing your home for sale this spring makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home. Take advantage of the buyer activity currently in the market. We sold 112 homes in Napa Valley in March alone!

2. There Is Less Competition Now

Housing inventory has declined year over year for the last 32 months and is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon. Historically, the average number of years a homeowner stayed in their home was six but has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move. The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 45 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly, AND you’ll be able to find a premium home to call your own! Prices are projected to appreciate by 4.8% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

We sold in March of 2018 112 homes in Napa Valley. The demand is strong. Talk to Christine Hannah for facts.

It’s Tax Season… Use Your Refund to Jump Start Your Down Payment Savings!

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It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | Simplifying The Market According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year. Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a Napa home in 2018, this can be a great jump start toward a down payment! The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.) It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | Simplifying The Market Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state. It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | Simplifying The Market The darker the blue, the closer your tax refund gets you to homeownership! Not in Napa , but for those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream!

Bottom Line

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! Christine Hannah of Homes of the Napa valley: "This tax season, your refund could be your key to homeownership!"

The Mortgage Process in Napa Valley: What You Need to Know [INFOGRAPHIC]

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The Mortgage Process: What You Need to Know [INFOGRAPHIC] | Simplifying The Market The Mortgage Process: What You Need to Know [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Many buyers are purchasing a home with a down payment as little as 3%.
  • You may already qualify for a loan, even if you don’t have perfect credit.
  • Take advantage of the knowledge of an experienced Realtor/Broker like Christine Hannah, your local professional who is there to help you determine how much you can afford.

Calm Down! The Napa Real Estate Market is NOT Falling Apart

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Calm Down! The Real Estate Market is NOT Falling Apart | Simplifying The Market There has been tremendous volatility in certain markets over the last few weeks (for example, the stock and currency markets). When this happens, some tend to lump all of their investments together and create an almost ‘Armageddon’ scenario where everything loses value quickly and dramatically. Real estate is an investment that can get caught up in this hysteria. Does the concern about the current housing market have merit? Financial advisors have been warning us for months that the stock market was ripe for a “correction.” Experts have been questioning the value of alternative currencies for over a year. In contrast, here are the opinions of three major players in the residential housing market:

Ralph DeFranco, Chief Economist, Arch Capital Services Inc.

“It’s premature to worry about a housing bubble. The typical warning signs – excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and/or poor affordability compared to the past, and a high number of internet searches on house flipping – are not present.”

Liu-Down, Genworth Chief Economist

“My thoughts on many recent discussions of ‘housing bubble’ – the bar for a housing bubble is higher than just prices being above some fundamental value. There must be widespread behavior change as well such as higher levels of fraud and speculation.”

Fitch Report

“US home prices are on track for a 5% nominal gain for the 4th consecutive year, returning national prices to their highest level since 2007. The growth has been driven by historically low mortgage rates and unemployment plus solid population and personal income growth rates…a meaningful correction should only be triggered by an unexpected economic shock.”

Bottom Line

Speculation has driven certain markets over the last year. However, it has not been speculation, but instead people’s desire for homeownership, that has driven the real estate market. "Still Supply and Demand is what drives the market," Christine Hannah empathizes. There are plenty people who love homeownership in a safe place with outstanding schools like Napa. There is a humongous desire for homeonwership in beautiful Napa.

5 Reasons to Love Using A Real Estate Pro in Napa [INFOGRAPHIC]

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5 Reasons to Love Using A RE Pro [INFOGRAPHIC] | Simplifying The Market

Highlights:

  • Hiring a real estate professional to guide you through the process of buying a home or selling your house can be one of the best decisions you make!
  • They are there for you to help with paperwork, understanding the process, negotiations, and helping you with pricing (both when making an offer or setting the right price for your home).
  • One of the top reasons to hire a real estate professional is their understanding of your local market and how the conditions in your neighborhood will impact your experience.
  • Experience is a very important factor for a successful closing. There are so many things which may or may not go wrong.
  • Christine Hannah has 18 years of real estate experience in the Napa Valley. She has learned from each and every of her 175 closings. Call her for an consolation before your next move. 707.257.6000