The real estate market has been white hot for most of 2020 and is continuing into 2021. It’s easy to see why as mortgage interest rates have reached historic lows among other factors. Napa real estate, especially homes with larger property lines have been a prime benefactor of these conditions. Many real estate agents cannot keep up with the demand for homes as what we are experiencing is both a buyers and seller’s market at the same time.
The rate of a 30-year fixed-rate mortgage dropped over a percentage point in twelve months-something very unusual in this market. This is making even higher-end Napa real estate notably more attractive thus putting pressure on real estate agents to continue moving homes. Meanwhile the Federal Reserve moved its lending rates to 0 percent. In the midst of all this the Fed has also engaged in a great deal of quantitative easing in order to balance the markets. They’ve accomplished this by purchasing $2 trilllion in mortgage-backed securities and are purchasing another $80 billion in treasury securities a month and $40 billion in agency mortgage backed securities until their goals for employment and other indicators are met.
Real estate agents in Napa, just like many other buyers, are noticing that due to this pandemic and low interest rates upper Napa Valley listings are low in number and are in incredible demand. The larger property lines that characterize this kind of Napa real estate have caught the eyes of many forcing buyers to search social media several times a day for new listings. Despite the high fire danger in these areas, many are still willing to go purchase these properties and pay incredibly rates for fire insurance.
Napa real estate has been in demand for several decades due to its climate, large property lines and rural lifestyle. Real estate agents in the area, while very busy are excited to help newcomers and assist those looking to sell. 2021 is looking bright for real estate in Napa Valley and we look forward to serving you whether you are interesting moving to our area or setting up your property with its new owner!