In the past decade, Napa median single family home sold prices recovered from a devastating decline in the financial and housing crisis to rise 97.8% from $371,333 to $734,667. Condo/loft/TIC sold prices rose 119%, from $242,000 to $529,667.
2009 mortgage rates were just above 5%, compared to 3.5% today.
Single family home inventory was higher – 5.7 months for single family homes vs. 1.9 months today. Undergoing an even greater decline, condo/loft/TIC’s inventory fell from 14.4 months in 2009 to just 1.8 months today.
The closing year of the decade, 2019, saw continued median sold price growth: 2.8% and 11%, respectively, for single family home and condo/loft/TIC’s.
Today, the question everyone is asking: what to expect in 2020? All signs remain strong that real estate prices will continue to rise in because of the following factors: low interest rates, low inventory, strong buyer demand and a strong job market. Until one of these factors changes, the equation has only one possible outcome: higher prices.