The residential sector in Napa Valley is opening up great property investment opportunities. A Californian real estate service, DataQuick, has estimated that in June prices in the greater San Francisco Bay Area were up by 10.4 % over the past twelve months. The good news for property investors entering the market now (but unfortunately not people who bought at the peak) is that the median house of $417,000 is still a long way short of the peak of $665,00 in 2007.
Reassuringly for investors, distressed sales fell across the market with the percentage falling from 44.3% a year earlier to 36.1%. The overhang of foreclosed properties is disappearing, which is good news going forward. Investors are certainly seeing the opportunity and accounted for 23.4% of sales compared to 20% last June.
Interest is particularly keen in Napa Valley, the USA’s premier wine region. It had the second highest change for homes sold in June in the Bay Area. There are planning constraints in place which help prevent over development and help make it a sound investment location. We were there looking at the market in June and it certainly has a lot going for it. The key is to find the right product in the right location at the right price. When we find it, our clients can enjoy the rewards from a sound property investment in one of the USA’s premier locations – Napa Valley.