What is the property for sale inventory like in California?

The year 2021 has become a boom period for property sellers, characterized by a limited available inventory and historically low mortgage rates. While lenders are thriving in this environment, real estate agents employ unique strategies to heighten interest in their client’s property.

In Napa, CA, for example, where prime homes for sale are always in high demand, agents have initiated bidding processes that encourage buyers to compete for quality Wine Country real estate.

Status of the Current California Housing Market

According to the California Association of Realtors (C.A.R.), the month of January 2021 resulted in the highest increase in sales and pricing in seventeen years, and year-on-year 2020 real estate values increased for the eighth straight year.

By all accounts, the California real estate market is red hot. A significant contributor to this boom has been low mortgage rates that currently are hovering around all-time lows of 2% for a 15-year mortgage and 3% for a 30-year.

Also, many investors have enjoyed a sustained rise in the equity markets over the past several years that has substantially boosted their investment portfolios.

And, among retiring Baby Boomers everywhere, the longtime dream of owning property in the highly sought-after wine country of Napa Valley is becoming a reality.

How Does the Bidding Process Work?

These days, with a real shortage of available homes for sale, selling agents are using strategies to encourage more prospective buyers to view the property. To do this, the agent and sellers agree on a seemingly low price to offer to attract more prospective buyers.

For the seller, the fun usually begins as the offers start to come in. Acting as the “referee” for the bidding process, the agent receives the bids and sets a firm and final date when the seller will decide.

Cash Offers vs. Borrowing

Another determining factor in some of the Wine Country real estate bidding wars is whether the buyer is offering to pay “cash” for the property or will need to borrow. Cash deals are generally more straightforward, close faster, and have more certainty than those that require loan approval or other contingencies that can delay or cause the deal to fall through.

As a result, sellers of Wine Country real estate often choose a cash deal that is slightly less than one that might carry a contingency.

Buying or Selling? Contact St. Helena Real Estate

For both buyers and sellers, the hot Wine Country real estate market demands the support of an experienced, knowledgeable agent. The knowledgeable representatives of St. Helena Real Estate, located in the heart of Napa Valley, are keyed into all the current transactions, market conditions, and strategies to help buyers and sellers achieve the best possible outcomes.

St Helena Real Estate agents cover the entire Wine Country communities, including Calistoga and Napa, CA, and all communities in between.

Wine Country real estate is always in demand, and working with a qualified real estate agent is vital. Contact St, Helena Real Estate for a no-obligation consultation to learn more about your property’s market potential or to help you find that dream location.

Visit the St. Helena Real Estate website to learn more and to schedule a personal consultation.

You can fill out the simple Contact Form, and someone will contact you promptly to schedule a meeting. Or, you may phone (707)-967-9570.

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