NAPA VALLEY
High Absorption Rates = Great Time to Sell!
June Statistics
We are still seeing more luxury homes selling and the absorption rate is at 72.6% which makes this a seller's market. Typically rates below 15% indicate a buyer's market and above 20% is a seller's market. While this is a seller's market, the interest rates are at historic lows so this makes it a great time to buy as well!
The number of homes for sale is down across Napa County and buyers continue looking for second homes or if they have the ability to work from home they are looking for homes with more space. We are seeing that the number of sales is increasing as the number of pending sales increased in June. For this reason the absorption rate is so high. If you are thinking about selling, this could be a great time!
If you are considering buying and will need a mortgage, I would highly recommend reaching out to a mortgage lender for prequalification. This way you will be prepared and have one up on other buyers.
Inventory continues to decrease year over year. In June total homes for sale was down 19.1% or 68 homes as was the total sold which was down 24.7% (24 homes). The number of pending sales was up 26.4% (29 homes). The average sold amount was up 15.4% ($201.44k) and the average dollar per square foot was up 19.1% ($120.2). The average days on market was up 52.6% (28.25 days). To get a better understanding of the right time to buy/sell, below is a breakout by town.
In
Calistoga
the number of homes on the market was down 4% (2 homes) while the number of sold homes was up 50% (2 homes). The pending sales was also up again by 3 homes (43%). The average sold amount was up 32% ($342k) and the dollar per sq. foot was also up 112.4% ($372). The days on market was up 55.6% (40 days). This is definitely a great time to sell your home in Calistoga (absorption rate: 33%).
In
Napa
the total number of homes on the market was down 20% or 43 homes. The number of homes sold was also down (36.4% or 32 homes) but the number of home sales pending was up 21.6% (19 homes). The average sold price was up 41% ($395k)and price per square foot was up again year over year (23% and $122). The average days on market was down this year by 9.7% (6 days). It is still a seller's market in Napa ((absorption rate: 94.8%).
In
Saint Helena
the number of homes was lower again this month by 28.6% (22 homes) but the number of homes sold was up 6 homes (150%). Pending sales was up with 14 last year and 17 this year. The average sold price was down by only $3.25k mostly because of 2 homes this year that sold for $700k and $725k which brought the average down. The average price per square foot was also down 10.5% ($105.19) again mostly because of the 2 homes that sold this year for less than $1M. The days on market was up 71 days (126.8%) which is primarily because of a $5.28M home that took 273 days to sell. St. Helena's numbers indicate that this is a great time to sell
(absorption rate: 49.1%)
.
In
Yountville,
there was slightly more inventory this year than last year with 11 houses on the market this year and 9 last year (up 22%). The same number of homes sold last year and this year (1 house)
but there was 1 pending sale last year and 5 this year. Last year the house that sold was $877k at $649 per square foot and 25 days on the market. This year the house that sold went for $949k at $741 per square foot and 33 days on the market. This could be a great time to put your house on the market in Yountville (absorption rate: 54.55%).
Today's Rates (please check with your lender as these change regularly):
30 Yr FRM 2.90%
15 Yr FRM 2.56%
FHA 30 Year Fixed 2.45%
Jumbo 30 Year Fixed 3.83%
5/1 Year ARM 2.75%
(Includes single-family homes in Calistoga, St. Helena, Yountville & Napa)
No. Properties
Active
in
June 2018: 290
No. Properties
Active
in
June 2019:
356
No. Properties
Active
in
June 2020:
288 (down 19.1% to 2019)
No. Properties
Sold
in
June
2018: 87
No. Properties
Sold
in
June 2019: 97
No. Properties
Sold
in
June
2020:
73
(down 24.7% to 2019)
No. Properties
Pending
in
June
2018: 100
No. Properties
Pending
in
June 2019: 110
No. Properties
Pending
in
June
2020:
139 (up 26.4% to 2019)
Avg
days on market
in
June
2018
:
35
Avg
days on market
in
June
2019
:
54
Avg
days on market
in
June
2020
:
82 (up 52.6% to 2019)
Avg sale price
June
2018
:
$1.315M
Avg sale price
June
2019
:
$1.306M
Avg sale price
June 2020
:
$1.507M
(up 15.4% to 2019)
Avg $/Sq. Ft.
June
2018
:
$739
Avg $/Sq. Ft.
June
2019
:
$629
Avg $/Sq. Ft.
June
2020
:
$749
(up 19.1% to 2019)
