The buying frenzy of the past few years has subsided. But, relatively speaking, the rate of sales continues at a robust pace and the prices of homes in the under-$600,000 range continues to rise at record levels throughout the county. The higher priced homes above $600,000 have shown a sharp decline in both the number of sales as well as the dollar volume of those sales. Also, sales of homes under $200,000 now represent only 1.92% of the total dollar volume and only 5.01% of the number of sales reported to the MLS.
Moderately priced subdivision homes in the cities of Napa, American Canyon, and upvalley communities, as well as duplexes, show the greatest increase in prices, with duplexes leading the way and showing an average increase of almost 30% for each of the past two years. On the other hand, sales of homes with a price tag of over a million dollars declined sharply during the first nine months of 2001, compared to the same period in 2000. (i.e., 47 sold in 2001 - 64 in 2000 and $84,525,833 in dollar volume in 2001 compared to $125,422,000 in 2000.)
One of the key factors for the ongoing stability of the real estate market are the very low mortgage interest rates which have been available since January of 2001, fluctuating in the low 6% to 7% range for most of the year. Currently (11-07-01), a conforming fixed rate mortgage loan can be secured for as low as 6% to 6.5%, depending on the points a borrower is willing to pay.
Copyright © 2001 John & Marlene
Murdock, Custom Lending Group,
Data Compiled by John & Marlene Murdock, Custom Lending Group, (707) 252-2700
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