What Can Cause Real Estate Values to Decrease?

November 4, 2019 7:07 pm Published by Leave your thoughts

Property owners want their investments to increase in value, so when real estate values decrease in Napa County, CA, this can put a damper on future plans. If a real estate appraisal shows decreased values in Napa County, CA, the property owner may have to put their plans on hold or take a loss during a sale.

Why would the value go down? Several factors can affect property prices. Many are out of the owner’s control. Following are a few reasons your real estate may go down in value, which you can do little to affect.


Natural disasters can devastate an entire community. As we’ve seen in recent years, hurricanes and wildfires are more common than we would like them to be, and they leave millions of dollars in property damage in their wake. From tornadoes to earthquakes to mudslides, these natural disasters can wreak havoc that results in real estate value decreases in Napa County, CA.

These disasters can cause two waves of damage. Their initial onslaught can cause structural damage, and their occurrence can cause future market damage. For example, buyers may be leery of buying a real estate in an area that has experienced a hurricane, wildfire or earthquake in the past. Similarly, if an area has suffered flooding due to a natural disaster, the property may require flood insurance going forward, which can hurt a property’s value and appeal.


Mortgage rates are another important factor in real estate appraisal value decreases in Napa County, CA. When interest rates go up, buyers can no longer afford to spend as much on a real estate. The same purchase price will now cost them more each month, and they will have to spend more over the loan’s lifespan.

As a result, sellers may have to reduce the asking price for their real estate. The pool of buyers may also be smaller, which further decreases the demand (and therefore the value) of the property. All of this is taken into account when an appraiser determines the current market value of an estate, which means the mortgage rate can cause real estate values to decrease in Napa County, CA.


Even if the subject property has not experienced a foreclosure, nearby properties that have been foreclosed on can affect its value. If an area has several properties with short sales or foreclosures, it can make the neighborhood seem less desirable to buyers, which will decrease the property values.

Additionally, the sale prices of the foreclosed homes bring down the average value for sales in the area. Since appraisers use these sales to help determine the value of a home for an estate appraisal, these numbers are important.

Learn More

To discover more about what can cause real estate values to decrease in Napa County, CA, contact your local appraisal professionals at County Appraisals Inc. Our expertise includes agricultural-related properties typically developed as vineyards, wineries, rural estates or single-family residential uses on acreage. Our appraisals for lending, estate tax valuations, estate planning and purchase negotiations make your appraisal easy and understandable. Reach out to us today to schedule a consultation.

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