There are a lot of reasons real estate is booming.
Income and price used to be the deciding factors of whether or not someone could afford to buy a home. Interest rates are now the driving force that is making ownership possible for many more.
For example, in 2000, rates were above 7%. That meant that a $500,000 mortgage would have a monthly payment of $3,326.52 (without taxes and insurance). A $500,000 mortgage at a 2% interest today is $1,848.10. Add to this the fact that rents continue to rise. So, in many cases, it is less expensive to buy than to be a tenant.
Pent-up demand in Napa Valley
All the reasons that homeowners need and want to move still exist. Marriage, divorce, birth, death, job transfer, and tax planning, are still what is nudging most Napans to move.
Add to that the influx of people that have long dreamed of being free from their commute.
The past 10 months have allowed some of them to realize that option. If you have priced homes in Bay Area cities, you are probably aware that Napa County is less expensive and more desirable.
Don’t get caught saying “Woulda, coulda, shoulda.”
Because there is a shortage of homes to view, and because prices continue to rise, some home buyers are asking themselves if they should wait. Some feel that if they wait a year, the prices will go down and there will be more homes for sale. Buying a home is a big decision. Your family dynamics will dictate the right time to purchase a home.