Burt Polson’s Real Estate in the Napa Valley Napa’s residential real estate market

REAL ESTATE IN THE NAPA VALLEY

Napa’s residential real estate market

It has been a provocative few weeks that deserve the sharing of a few highlights.

A SIZZLING RESIDENTIAL MARKET

Though I focus on commercial real estate sales and leasing, I am always eager to help past clients, family, and friends in a home purchase. The current housing market is rapidly moving, and if you slow down to take a breather, you may lose out. I also had a BURT M. house listed for POLSON sale that just closed. It received an offer after 14 days and closed 21 days later. I am currently working with a buyer, which took us on tours of close to 20 homes and, after several attempted offers, finally having one accepted.

Looking at a snapshot of the Napa residential market for October 2020, 92 single-family homes sold, 57 were at or over the asking price. The average for a listing was 63 days on the market, with the median being 28 days. The median price was $751,000.

As of this article’s writing, there are 142 single family homes for sale in Napa, 48 below $1 million, 25 below $750,000.

It feels there are many more buyers than homes for sale with the multiple offer scenario occurring often. Of the homes on the market, 23 are new just in the past three days—that is considerable. Owners are deciding now is a good time to sell and are jumping in, getting top dollar.

WHAT IS KEEPING SOME SELLERS ON THE SIDELINE?

It is a great time to sell because there are lots of buyers.

Dreamstime

The buyers are flocking to Napa between many desiring to leave the city life searching for the suburbs or country living and the rock-bottom interest rates.

Still, some homeowners are reluctant to sell. Zillow recently surveyed 1,000 homeowners who considered selling in the next three years but are waiting. Here are their findings: • 39% anticipating getting a better price if they wait • 34% feel life is too uncertain • 31% are concerned they will not be able to find a home they can afford • 31% decided to upgrade and renovate instead • 31% are seeing their financial situation is too uncertain • 25% are concerned about their family’s health with the pandemic • 14% decided to refinance and stay put • 6% are in some form of forbearance with their financing

THE GREAT AMERICAN MOVE

According to the 2021 Emerging Trends in Real Estate, a publication of PwC and the Urban Land Institute, the event such as the pandemic accelerated an existing trend of people moving in unconventional patterns out of major cities.

Boom markets like Austin, Phoenix, Salt Lake City, and Tampa metro have a high demand and rapid price appreciation for homes as people continue moving to these areas.

The new boomtowns of Charlotte, Denver, Dallas, Nashville, Portland, and Seattle are attracting many young workers. U-Haul statistics show an in-migration for the boom markets and an out-migration from the Bay Area, Chicago, and Los Angeles and New York areas.

Despite the negative impact of COVID-19, the housing market quickly recovered primarily due to the low-interest rates and the value of having a safe, multi-functional “home.” The recovery has led to the demand and the move to a more sustainable lifestyle out of city cores.

Burt M. Polson is the CEO of ACRESinfo.com, a commercial real estate brokerage company and CEO of StoneMarkerInvestments.com, a private equity real estate fund. Call him at (707) 254-8000 or email burt@ acresinfo.com and burt@stonemarker investments.com.

Burt M. Polson is the CEO of ACRESinfo.com, a commercial real estate brokerage company and CEO of StoneMarkerInvestments.com, a private equity real estate fund. Call him at (707) 254-8000 or email burt@acresinfo.com and burt@stonemarker investments.com.