Market Conditions in Napa>Question Details

Elizabeth, Home Buyer in Napa, CA

The entire market in Napa, CA is priced like it is 2004, why?

Asked by Elizabeth, Napa, CA Wed Jul 18, 2007

I asked this earlier, and was answered; that people will ask high prices and let their home site on the market if they don't have to sell. This is true, but how can the ENTIRE market in Napa, CA be this way? Some of these home owners must have to sell their homes to move for a job or some similar reason. Why is this market so overinflated and priced like 2004, without the demand to support it?

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Prices in Northern California were stratospheric at the beginning of 2004. However they coninued to climb that year to outer space by early 2005 by another 20% or so. So the bubble burst of a 20% decline in prices form 2005 to 2007 only brings us back to 2004. Expecting prices to fall all the way to where they were in 2001 or 2002 is as unrealistic as those sellers who are still trying to get top of the market prices today. By the way, an asking price might be no more related to a property's actual value than its parcel number. List price is just a number. Find out what the average completed closed (recorded) sales are for the type of house you want . That will tell you what the market value is. and offer 90 to 95% of that market value figure on any listing regardless of its list price. Be sure you love the house, and plan to keep it for at least three years. Even if you get it at a 5% discount, you will lose if you try to flip it quickly due to transaction costs.
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1 vote Thank Flag Link Wed Jul 18, 2007
Jim Walker, Real Estate Pro in Roseville, CA
You're right: prices have increased to approximately late 2004 levels based on recently sold properties. The market's peak here was around 2006 so today's prices are still below that peak. I don't find most sellers eager to have their home sit on the market but pricing is not an exact science. That said, homes in Napa, on average, are selling for 96% of asking price and closing on average in 88 days -- just over 2 months,. That suggests to me that prices are about right, on average, since the time on the market isn't extended. Are you looking for a specific type of property and/or in a specific price range and not finding much?
0 votes Thank Flag Link Fri Dec 5, 2014
Not enough homes are on the market and not enough desparate sellers are out there to sell cheap. Just enough buyers are out there to overlook the inflated prices and pick up a few choice properties. If interest rates rise, more banks will put more foreclosures on the market and many more people will not be able to afford their homes and let it go. It does seem however that the worst is over and the market has seemed to stabilze at lower levels. Just don't expect to double you money in two years on perfect house priced at market any time soon. Sweat equity on a short sale or forclosure is the only way to make money right now in real estate.
0 votes Thank Flag Link Wed Jan 19, 2011
wait til you see 2000 prices
then maybe safe to buy


good luck
0 votes Thank Flag Link Wed Apr 2, 2008
Here we are at the start of Q2 2008. Interesting to note that pressure from REO, short salesand few buyers in Napa has started to bring prices in line. I have several posts on my blog about the Napa market and the opportunity that now exists in Napa Valley. Read more athttp://
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0 votes Thank Flag Link Tue Apr 1, 2008
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