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Real Estate: The “Bright Spot” in California’s Economy

Posted on December 17, 2020 by Admin

The beginning of 2020 saw the California real estate market humming along at a good clip. Then came March and the COVID-19 lock-down and everything came to a screeching halt. Sellers pulled homes off the market, afraid of contagion, and buyers stopped looking, mostly for the same reason, as the entire US economy literally shut down for about the next three and a half months.

But in June of 2020 things began to change. Real estate was designated “essential” and Home buyers, driven by a refocused need of home as a refuge, began to come out again. This resurgence was in part fueled by a large segment of workers in our economy who needed to work remotely from home, many with children who were also schooling remotely from home. Home has always been held in high esteem, but the pandemic raised the idea of Home as a Refuge to new levels of demand not seen before.

In July, the California Association of Realtors (C.A.R.) reported that home sales across the state rose by a whopping 42% from May to June 2020. That’s partly due to the state’s gradual reopening which happened at that time as well as from pent up buyer demand.

What was a surprise and has since become a trend is the exodus of buyers leaving high priced, high-density urban areas, like San Francisco, for suburban areas that offered more space, privacy, and affordability. In fact, as we speak, San Francisco continues to experience a softening of prices in its housing market. And local news channels report that a significant number of San Francisco rentals are sitting vacant.

As an example, this trend was readily seen last summer in areas like the Russian River of the North Bay. Out of the way comparatively “cheap” river shacks along Rio Nido, Guerneville, Monte Rio and Cazadero were gobbled up like so many potato chips left unattended at a picnic with all-cash offers and little to no contingencies. Other rural to suburban areas, like Murphys, is experiencing similar value shifts in its housing market. With many now having the ability to work remotely, areas once inaccessible as a primary residence are now doable.

Home Buying Institute (HBI) predicts the following for the California real estate market in 2021:

  1. Home price appreciation will tick upwards as buyers and sellers realize that real estate deals can still be conducted despite the pandemic and because of upcoming vaccinations which will help to create confidence and normalize life.
  2. “Urban Flight” will continue to be a thing, with the desire for space and privacy at an all time premium which will continue to drive up prices in small towns, suburbs and more rural areas.
  3. Home inventory is expected to grow as more sellers get comfortable with putting their home on the market again and as we see more foreclosures come to market.
  4. Mortgage rates are expected to stay at an all time low at around 3-3.5% well through 2021.
  5. An increase in home sales is expected as the urban to suburban migration continues, which should keep California’s real estate market very active all through 2021.

In conclusion, the housing market continues to surprise economists and analysts. During this unprecedented pandemic it has been referred to, repeatedly, as the one “bright spot” in the nation’s economy. This surprisingly strong performance is expected to continue through the end of 2020 and well into 2021. And as we collectively face the challenges ahead, including what is now commonly termed a “dark winter” it’s nice to have a bright spot on the horizon. Finally, it’s worth remembering that the shortest, darkest day of the year is December 21st, but after that, days will get longer and brighter. Think of the pandemic as the shortest, darkest day of the year and look forward to things getting better and brighter.

Wishing you and your loved ones hope and brightness in the days to come. May 2021 be the year more of our hopes and dreams come true.

—Mark Stevens

December 18, 2020

 

 

Source citations:

Norada, https://www.noradarealestate.com/

HBI (Home Buying Institute), http://www.homebuyinginstitute.com/news/california-housing-predictions-for-2021/

2019 Harvest Begins in Napa Valley

Posted on August 13, 2019 by Admin

Photo credit: Sarah Anne Risk

Average crop size and spectacular quality anticipated from 2019 growing season

Napa, CA (August 13, 2019) – The Napa Valley Grapegrowers (NVG) is pleased to announce that harvest has begun in Napa Valley. As is traditionally the case, harvest typically begins with the sparkling wine producers and Rodgers Vineyard will begin picking Pinot Noir for Mumm Napa Valley today. Throughout Napa Valley most white varieties will be harvested through the end of August, while the Cabernet Sauvignon harvest will likely begin mid-September.

“We have had favorable ripening conditions in Napa Valley over the past 30 days,” said NVG President Paul Goldberg, who is also president of Bettinelli Vineyards. “The very mild, early-season temperatures have led to an incredible growing season.”

Heavy rains in March and April cultivated robust cover crops, which organically enriched the soil with an abundance of nutrients. The heavy rain also delayed pruning and bud break by a few weeks in some parts of Napa Valley, but that hasn’t had any effect on the overall crop. The rain in April created a bit of shatter in Chardonnay clusters during bloom but didn’t significantly reduce crop size. Growers compare it to the same amount of reduction that occurs normally during crop thinning and they call the April rains “nature’s way of thinning.” Fruit set was right on course during the spring for Cabernet Sauvignon, Merlot, Petit Verdot, and Malbec. Napa Valley received more rain in May, followed by a heat spike in June, which sparked canopy growth. Since that initial short heat wave, the weather throughout the summer has been moderate and veraison has been “beautiful and even” according to Goldberg. Veraison is an exciting time in the ripening cycle when white grapes transition from green to gold and red grapes transition from green to red, a sign that harvest is just around the corner.

“With the late-season rains, vine growth took off, so crews were still leafing and hedging the vineyards when – boom – it was time for harvest,” added Kendall Hoxsey-Onysko, a Napa Valley Grapegrowers board member and the business manager for Yount Mill Vineyards. Yount Mill Vineyards grows five varieties for Mumm Napa Valley: Pinot Meunier; Pinot Noir; Pinot Blanc; Pinot Grigio; and Chardonnay and will harvest their first fruit for Mumm this Saturday, August 17th.

Each year, the Napa Valley Grapegrowers hosts the definitive summary on the valley’s harvest and streams it live for thousands of viewers world-wide.  This year’s Harvest Press Conference will be aired on Facebook October 15th.  A media alert will be circulated with timing and other details.

About Napa Valley Grapegrowers
NVG is a non-profit trade organization that has played a vital role in strengthening Napa Valley’s reputation as a world-class viticultural region for over 43 years.  Its mission is to preserve and promote Napa Valley’s world-class vineyards.  NVG represents 725 Napa County grapegrowers and associated businesses.

For more information, visit www.napagrowers.org Follow Napa Valley Grapegrowers on Facebook and Instagram

Article courtesy of Wine Industry Network

The Significance of Rental Price Increases for Real Estate

Posted on July 23, 2019 by Admin

According to Inman, “Rents in the US just keep going up and up…..The average rent was up 3.2% year-over-year in June. Last month also saw the biggest average rent increase in more than a year….”

In a nutshell, it’s a perfect time to buy rather than rent. Reasons why include:

  • Very low interest rates
  • A real estate market that has “softened” over the last year more in the direction of buyers
  • Tax breaks that come with buying and owning
  • Control over the place you call home
  • Realizing the “American Dream”
  • Building equity/apprecation over time (a house can be like a big piggy bank)
Zeroing in on Sonoma County, here’s what we have:
And take note: the “doldrums” of summer is the perfect time to visit open houses, get pre-approved for a loan, and make an offer. The market is typically “slow” this time of year, with more inventory and less bidding, so you are more likely to get something you want at a price that works.
Need help finding the right place? Give us a call. We are here to help you find your dream home!
Mark Stevens & Associates, 707 322 2000
Graphs courtesy of RentCafe

News This Week: Election Results

Posted on November 09, 2018 by Mark Stevens

EACH WEEK WE COLLECT TOP LOCAL NEWS AND RECENT REAL ESTATE STORIES. 

 

1) Sonoma County Voters Approve Funds for Parks

Voters approved Measure M by an overwhelming margin on Tuesday. The Measure increases sales tax in Sonoma County by one eighth of a percent. Revenues will be used to maintain county and municipal parks. READ MORE

2) Butte County Fire Darkens Sonoma County Skies

Smoke from the Camp Fire, burning over a hundred miles to the north east of Sonoma County, is reminding many residents of the devastation that we experienced 13 months ago during the Tubbs Fire. READ MORE

3) Mixed Success for Affordable Housing Ballot Measures

There were seven measures on the Napa County and Santa Rosa ballots that aimed to address affordable housing issues. Of the seven measures, three failed to get the necessary votes. READ MORE

4) Prop. 6 Defeat Allows Infrastructure Improvements in Sonoma County to Continue

The defeat of Proposition 6 means that local projects such as SMART train expansion and Highway 101 widening will continue to receive funding. READ MORE

featured image courtesy of pressdemocrat.com

News This Week: Best Winery Experiences and Cabin Getaways

Posted on October 26, 2018 by Mark Stevens

EACH WEEK WE COLLECT TOP LOCAL NEWS AND RECENT REAL ESTATE STORIES

Best Sonoma County Wineries

With over 425 wineries in Sonoma County, it can be hard for a first time visitor to know where to go. This guide will help you experience the best wine tasting of the region. READ MORE

30 under 30

Check out this list of 30 inspiring future business leaders, politicians, and activists leading the way in Sonoma County. READ MORE

Cabin Getaways

Sad to see the end of Summer? Here are some extraordinary cabins that remind us that the point of cold nights is to cozy up by a fire and relax. READ MORE

Architectural Explainer

Sotheby’s International explores eight of the most common architectural styles that are available on the market today. READ MORE

*featured image courtesy of sunset.com