Current market factors make real estate appraisals in Napa County, CA more important than they typically are. Whether you are placing your home on the market, assessing whether your taxes are fair or starting estate planning, the low supply, high demand nature of the California real estate market changes the value of your home, commercial property or land constantly. Here are the factors in the real estate market that affect your need for an appraisal:
- Home sales increasing: The housing market will likely see a nominal increase in 2017. Last year saw modest gains in home sales, and that is expected to continue. Supply of available units is low, and affordability remains a challenge in this state. But people still move here or prefer to stay here. While we do not see the sales increases of other states, they still increase moderately or stay nearly the same. They do not decrease.
- Higher median price: In 2016, the median home price was $502,300. This year, that is expected to increase 4.6 percent to $525,400. This is a lower increase than in previous years, which shows less inflation in housing prices. However, since land values also rise and supply remains low, you will likely experience more equity in your property.
- Affordability is an issue: The affordability index for 2017 is only 28 percent, which is a drop from last year. This has been a problem for a long while. In 2011, the affordability index was 53 percent. It dropped slightly to 51 percent in 2012, but took a large drop in 2013 to 36 percent. The supply of affordable housing and this index have been below 40 percent ever since, and this is the first year it is anticipated to be below 30 percent. This is good news for sellers, but it also means you need to market your property precisely to attract the buyer who can finance a purchase.
- Unemployment is low: Non-farm job growth anticipated for 2017 is 1.9 percent, and unemployment is low at 5.4 percent. While the job growth does not appear to be much, it also offers good news for sellers. With most of the population employed and more jobs in the future, it will be easier for you to sell your home or other property.
- Seller’s market: Home sales are expected to increase from $209 billion in 2016 to $220 billion in 2017. If you are planning on selling your home this year, your chances of gaining equity are good. Projections indicate that supply only increasing by a mere 0.8 percent, which places your home in high demand. It is not uncommon to get offers beyond your asking price.
- This affects value: A seller’s market inflates the value of your home. If you have an estate plan, schedule an appraisal and see if updates are necessary. The same is true if you are tax planning or making decisions about lifetime gifts. An appraisal guides you through these issues, and in this active real estate market, you need to stay informed of your properties’ values.
County Appraisals Inc. offers real estate appraisals in Napa County, CA. Call us today to arrange for an appraisal so you can make informed decisions about selling or estate planning.
Categorised in: Real Estate Appraisals
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