This spring season may bring a few more headaches than usual to prospective buyers looking for their dream homes. The housing market has always been stressful to consumers with rising real estate costs, low inventory, and demographic shifts. Napa Valley real estate and the general homes for sale in Napa CA are just one example of high demands throughout all years. However, Danielle Hale, chief economist for Realtor.com, states, “I think it’s fair to say this is the most competitive housing market we’ve seen in recorded history… There’s a record low inventory and strong interest from buyers in getting into the housing market.”
For people looking for Napa Valley real estate, this is especially troubling as the market here is in such high demand. What is a main factor of this low inventory? Underbuilding. This results from labor shortages, strict zoning, high costs, and regulatory barriers to new construction.
According to Realtor.com, there is a 8.5 percent decrease in available homes. Demographic trends indicate Millennials are reaching their prime homebuying age as they enter their 30’s, while Baby Boomers are looking to downsize. This results in major competition for smaller homes, the ideal home for first-time buyers and the perfect home for empty nesters. Napa Valley real estate has seen this competition first hand with an already fierce market.
Who faces the most frustrating homebuying experience? Young adults. They are bidding against older generations who have an accrued wealth of decades of homeownership. Yet, homes over $450,000 have seen a 1-2% increase in inventory in the last year. Therefore, high-end homes for sale in Napa CA aren’t experiencing as much of a low inventory as more budget-friendly places.
Listings are moving off the market faster than ever according to Hale. March saw an average of 63 days for homes on the market, a 7% drop from 2017. A survey by Realtor.com discovered that 40% of prospective buyers are willing to put more than 20% down and 26% are willing to pay above asking price. Napa Valley real estate is seeing aggressive buyers ready, and serious.
Mortgage date recently revealed that more and more borrowers are using a greater percentage of their income on mortgage loans – 20% of buyers were spending more than 45% of their income, numbers not seen since the Great Recession.
How can St. Helena Real Estate help you in your hunt for Homes for Sale in Napa?
With decades of experience in the business, a passion for Napa Valley real estate, and access to luxury homes in Northern California, St. Helena Real Estate has the ability to find any buyer their dream home. Luxury real estate is a delicate market requiring special skillsets. The real estate agents at St. Helena Real Estate have exclusive listings in the Napa Valley real estate market, as well as St. Helena, Yountville, and more. Customers an learn all about the various areas of the Napa region and browse through the active listings to really get a grasp of luxury homes for sale in Napa CA.
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Looking for luxury homes for sale in Napa CA? Perhaps St. Helena region or Sonoma? Contact St. Helena Real Estate today for a comprehensive look into Napa Valley real estate and homes for sale in Napa CA.