Its Different Here... But Is It Different In Napa?
"Napa County's housing market seems to be slowing down, with fewer sales and a slight drop in the value of the median priced home, new statistics reveal."
"The median sale price decreased 5 percent between March and April to $609,000, while the number of units sold plunged 39 percent, according to DataQuick Information Systems."
"However, April's median price remains 6 percent above a year ago and the market managed to set a record high of $641,000 in March, making future predictions difficult, said DataQuick president Marshall Prentice."
'"These are strange times for forecasters and analysts. Are we heading into a market lull? Or are we seeing the beginning of a significant downturn? Many of the fundamentals for housing are at a crossroads: inflation, interest rates, demand, household incomes, prices and whether homes are a good investment compared to other investments. Summer is going to be interesting to say the least," said Prentice."
"Napa Valley Realtors and brokers have an informed perspective on what's happening in county real estate and the market's direction."
"Coldwell Banker Realtor Robin Rose said, "One question everyone is looking at is how much the weather has affected our market. We're about to find out if the rain prolonged our seasonal slowdown."'
"Rose anticipates good choices for clients. "There is very strong demand for property in move-in condition, a good location, and priced reasonably. There are plenty of buyers out there."'
Are there now? 39% drop in sales and there are plenty of buyers? If you say so. You are the expert. Pay no attention to the math.
"ReMax's Jensen noted the current market is "complicated." Whereas the last dip began with homes in the middle ranges, this market is softest in the lower reaches. Jensen said first-time home buyers who worked their way into the market with creative financing have been squeezed as interest rates have risen."
"Overall, though, she says the shift is healthy. Buyers and sellers are no longer in "impulse" mode when it comes to transactions, and are making more rational economic decisions."
"DataQuick reports the "typical" Bay Area buyer has an eye popping $3,048 per month mortgage payment. That tops March's $2,948 figure and the $2,659 payment reported in April 2005."
Those figures don't unnecessarily alarm Mike Bolen of Intero Real Estate Services. Bolen said Napa Valley remains a draw.
But its different in Napa. Everyone wants to live there...
"There's always going to be a demand here for housing that you won't see in other areas. It's one of those areas that has everything great for real estate: location, tight supply, pricing power and demand," Bolen said"
'"We're still at extremely low interest rates. I don't see any cause for panic."'
'"A slight increase in mortgage rates and housing prices means buyers are spending a little more money and becoming more careful about what they are buying," said Rose."
'"Buyers are being more discriminating on every level -- price, amenities, and location. They have the luxury of time and availability of more product to make their decision," said Morgan Lane's Silvas."
"Not only are homeowners taking on higher monthly payments, the days of hosting a "mortgage burning party" seem to be dwindling, said Silvas."
"Different generations have different home ownership goals, she added. "I don't think most buyers today are looking at that as a goal," said Silvas."
What IS the goal then of today's buyer? They actually aspire to spend two to three times the cost to rent the same property just to have the privilege of renting from the bank?
Better hurry up before you are priced out of the new american dream forever! Renting from the bank won't always be this cheap! Prices will rise and soon you will have to pay 4 and 5 times the rental market cost to even get in the game! Hurry I tell you! What are you waiting for??!!
Don't be foolish. No longer is ownership the goal. The real goal is to rent forever and give your realtor and mortgage broker a nice fat reliable income.
Did I not tell you this whole real estate bubble was nothing more than a big fat PYRAMID SCHEME designed to benefit the real estate and lending industries?
Silvas doesn't believe the market is in a bubble. "Baby boomers remain in their peak earning years and stand to inherit a tremendous amount of wealth from their parents over the next decade or two," said Silvas.
OMG! Total hyena!!!