Napa Valley and Real Estate Market BI-ANNUAL REPORT
FACT: Napa Valley and Real Estate Market Report A comparison last 6 months of 20 and 20 The Napa County median sales price in December 20 is up 13.4% year over year at $678,000, and up 5.8% in Sonoma at $825,000 according to TrendGraphix. What does Median Mean? The median is the middle, so in terms of sales price, it is the sales price that has an equal number of higher priced and lower priced sales on either side of it. NAPA Sales figures in the City of Napa were mixed in the second half of 20. The total number of homes sold fell almost 15% compared to the second half of 20, but the median price properties that sold was almost 8% higher than in 20. In addition, average days on the market fell from 71 to 65. The least expensive residence sold during the period was a Golden Gate Circle condominium that sold for $240,000.The most expensive residence sold was a 4 bedroom, 4 bath home on just over 7 acres on Dry Creek Road that sold for $5,100,000. The house was almost 4000 square feet and boasted a two-level infinity pool and over 3 acres of vineyards. MEDIAN SALES PRICE $611,000 $659,000 ST. HELENA MEDIAN SALES PRICE PER SQUARE FOOT $392 $389 NUMBER OF SALES 569 485 Traditionally the leader in price appreciation, St. Helena took a step backward in the latter half of 20. Both the number of properties sold and the median sales price dropped %. Nevertheless, St. Helena is still the most expensive community in the Valley. During the second half of 20, 56 homes in St. Helena changed hands, more than half of which sold for more than $1M. The least expensive home in the sample is a 696 square foot home located on Mountain View Avenue that sold for $475,000. The highest sales price was for a 6 bedroom, 5 bath, home on Crane Avenue that sold for $7.55M. $1,205,000 $997,500 $640 $574 68 56 YOUNTVILLE Volume in Yountville is typically low but this year it fell an additional 28%. There were 18 sales in the second half of 20 but only 13 in 20. Prices also dropped in excess of 20%. However, with such a small sample, large percentage changes are less meaningful. As with other local markets, the average number of days on the market decreased. The median sales price also took a significant drop (18%). Again, however, consideration must be given to the size sample. The homes sold ranged in price from a low $670,000 for a 2 bedroom condominium to a high of $2,150,000 for a 3 bedroom, 3 bath home on Oak Leaf Court. $1,095,000 $862,000 $581 $555 18 13 DAYS ON MARKET 71 65 99 95 118 97 The statistics obtained from BAREIS Multiple Listing Service including defined criteria on 1/10/18. Information subject to change and may not include all sales. NAPA 75 LINCOLN AVENUE (707) 258-5200 ST. HELENA 1289 MAIN STREET (707) 963-1152
Million Dollar Plus Market Napa Valley The number of $1M+ properties sold in Napa County increased by 5% over the same period in 20, but the median sales price of those properties decreased from $1.5M to $1.33M. Of the 155 sales in this category, 75% were sold for less than $2M and only 7% were sold for more than $4M. The most expensive property sold was a 54-acre estate on Oakville Grade at $15M. The property features a 10,811 square foot French Country style home with 9 bedrooms and 6 bathrooms. The property has a caretaker s house and a guest house as well as beautifully manicured gardens and a small vineyard. 101 $1,300,000 71 $1,665,000 Country Property Napa Valley Country property (properties with a minimum of 1 acre) in Napa County saw a healthy increase in value in the second half of 20. The median price for the 71 properties in this category rose 28%, from $1.3M to $1.665M. The number of properties sold in this category decreased 30%, from 101 to 71, likely due to low inventory. Of the 71 properties sold, only sold for less than $1M, with the highest sale being $15M paid for a 54-acre estate on Oakville Grade. Agricultural land suitable for a vineyard continued to command top dollar. For example, a 42-acre vineyard on Oak Knoll Avenue planted with merlot and cabernet vines sold for $12M. 145 $1,500,000 155 $1,330,000
Napa Valley and Real Estate Market Report A comparison last 6 months of 20 and 20 What does Days on the Market Mean? AMERICAN CANYON American Canyon home prices remained relatively unchanged from the same period in 20. The number of sales dropped from 94 to 80, a decrease of just under 15%, and the median price dropped only 3%. Despite the drop in the median sales price, the median price per square foot actually increased by 12% and the average time on the market decreased by 22%. On the low end, a 3 bedroom, 2 bath home on Los Altos Place sold for $282,000. On the high end, a 3500 square foot, 5 bedroom, 3 bath home on Goldeneye Court sold for $705,000. MEDIAN SALES PRICE $504,500 CALISTOGA Calistoga experienced a drop in every metric we track. The number of homes sold dropped by 21%, but the median sales price dropped by only 6%. Like the other markets in the Valley, the average number of days on the market for sold properties decreased. Lack of inventory is a problem throughout the Valley. Prices for single family homes in Calistoga ranged from a low of $535,000 for a 2 bedroom, 2 bath condominium on Foothill Boulevard to a high of $5.4M for a 20+ acre vineyard estate on Bennett Lane. SONOMA The showed little statistical change year over year. There were 246 properties sold, only one less than in the same period in 20. The median price stayed steady, dropping only 3% from $785,000 to $759,121. The only significant change was in days on the market, which decreased by 27%. The lowest price paid was $270,000 for a 2 bedroom, 1 bath condominium in the Oakwood complex. The highest price paid was $5.4M for an almost 13-acre estate on Carriger Hills Road. The 4767 square foot, has 3 master bedrooms and 4 bathrooms, as well as a 980 square foot guest house. $785,000 Days on the Market can mean different things in different markets. BAREIS Multiple Listing Services, from which these statistics are derived, measures the number of days between the date the home is placed on the market and the date that it is reported as a pending sale, which is often weeks after an agreement is reached between a buyer and seller. $491,000 $805,000 $752,500 $759,121 MEDIAN SALES PRICE PER SQUARE FOOT $256 $493 $285 $479 $453 $479 NUMBER OF SALES 94 80 33 26 247 246 DAYS ON MARKET 54 94 69 42 78 50 SONOMA 800 BROADWAY (707) 996-3232 SONOMA - PLAZA 34 WEST SPAIN STREET (707) 996-3232 COMMERCIAL-NAPA 1040 MAIN STREET (707) 224-8454
Country Property In, about the same number of country properties (minimum 1 acre) sold in the latter half of 20 as did in the last half of 20. The median sales price was, however, 21% lower than it was during the same period of 2106. Of the 45 country properties that sold in 20, only one sold for less than $1M, and the most expensive property sold brought in $5.4M. 47 $2,8,000 45 $1,705,000 Million Dollar Plus Market Bucking the trend in 20, the number of $1M+ properties sold in the increased by 28%. Prices softened somewhat with the median dropping from $1.6M to $1.49M. As is the case in Napa County, the majority homes in this sample (77%) sold for under $2M. Only four properties in this category sold for $4M or more. Two sales, one on Carriger Hills Road in Sonoma and one on Oso Trail Drive in Glen Ellen, sold for more than $5M. 74 $1,612,500 95 $1,490,000
Commercial Property The Archer Hotel is open for business with 183 rooms. The Charlie Palmer Steak House inside the Archer has proved popular with both locals and visitors. Retail openings have just begun with Overland Sheepskin opening at the corner of First and Coombs. Compline a new style wine and food establishment is also open under the guidance of First Street Napa. Next to break ground downtown will be 52 townhomes averaging 1350 square feet (projected to sell for $800,000 each) at the Old Napa Register site between Second and Third Streets. Proposed but not approved are 84-124 homes on the parcel across from CIA-Copia that was once known as Copia Gardens. There is little industrial space available in Napa, especially for smaller spaces. There are less than a handful of properties available under 5,000 sq. ft. and very few under 20,000 sq. ft. In the 20,000 sq. ft. to 60,000 sq. ft. range, more options are available, but many have to be built. The 60,000 sq. ft. to 700,000 sq. ft. range has the most options, although several are in the planning stages and will likely need to be pre-leased to be built. The big news is the IKEA lease of 646,000 sq. ft. at 1 Middleton Way in American Canyon. Small temperature controlled spaces remain in demand. There are few spaces available for small wine/food production facilities without undertaking expensive retrofits. In the last six months, St. Helena has seen a stabilization of rents in both the retail and office sectors. There are a few available office spaces that are in the range of $3.50-$4.00/sq. ft., gross. Small industrial spaces are non-existent and the only property available is a 5,500 sq. ft. space on Vintage Avenue. In Calistoga, the long-awaited residential component Four Seasons resort is taking shape with about 60% homes pre-sold and construction in progress. Downtown merchants are seeing a slight uptick in rents and are facing a large challenge with the bridge improvement on Lincoln Avenue. A few vacancies are available. The city continues to embrace commerce and remains business friendly. Industrial inventory and office inventory remain low. Watch for a new housing project across from the High School baseball field. In the, both the for sale and for lease inventory is extremely low. New construction is insufficient to meet the demand amid strong economic conditions and an influx of buyers and tenants. Demand for warehouse space has been growing rapidly and willing buyers and tenants more than ever are willing to pay top dollar. The most coveted retail space continues to be the Sonoma Square area. Rents are at an alltime high and inventory is non-existent. FACT: The Fannie Mae / Freddie Mac loan limit for a single unit property was increased to $679,650 for Napa County in 2018 Napa Valley Annualized Rates $/sq. ft. New Leases/Second Half of 20 INDUSTRIAL $14.00 to $18.00 RETAIL $43.00 to $58.00 OFFICE $33.00 to $46.00 Annualized Rates $/sq. ft. New Leases/Second Half of 20 INDUSTRIAL $10.00 to $15.00 RETAIL $15.50 to $71.00 OFFICE $21.50 to $72.00 Commercial Property Update and data for annualized lease rates were based on information obtained from Coldwell Banker Commercial Brokers Valley, CoStar, BAREIS MLS and The Napa Valley Register. Real Estate Money Report Mortgage interest rates ended 20 lower when compared to year 20. According to Freddie Mac, the average interest rate for a conforming 30 year mortgage ($453,100 and below) was 3.95% in December 20, compared to 4.20% in December 20. The decrease comes as a pleasant surprise to most financial professionals, as higher interest rates had been forecasted for 20. Fannie Mae/Freddie Mac increased their loan limits for Napa County for 2018. The high balance loan limit was increased for single unit properties to $679,650, while two, three and four units were increased to $870,225, $1,051,875 and $1,307,5 respectively. FHA and VA loan limits for 2018 are identical to the Fannie Mae/Freddie Mac numbers. In December, the Federal Reserve policymaking committee raised the benchmark shortterm federal funds rate by a quarter percentage point to a range of 1.25% to 1.50%. The increase was the third quarter percentage point increase during 20. In addition, the Federal Reserve has been forecasting three additional quarter percentage point interest rate hikes during 2018. FACT: Per Freddie Mac, the average interest rate for conforming 30 year fixed mortgages in December 20 was 3.95%, compared to 4.20% for the year earlier. Real Estate Money Report was provided by Gene Ciabattari of Mortgage Solutions, Inc.