Knowing when the right time to sell your home is something that homeowners struggle with on a daily basis. But, if you are planning on selling your home in the near future, rising prices in the Napa Valley market is great news for you and definitely makes this year a very good time to sell.
One question that we get very often from homeowners is what is actually causing home prices to increase at the rate that they have been over the past two years? As in any industry, when there is less supply than demand, pricing increases naturally go up. Therefore, homebuyers are more willing to pay more to get what they are wanting, and often times in our current market, it is more a case of having to versus willing to.
The increase of home appreciations in the Valley did not happen overnight, and similarly, the leveling out of home prices will also take time to take place. The graph below, provided by the latest Home Price Expectations Survey, shows what is expected to happen with Home appreciations over the next five years. As you can see, prices will continue to rise through 2026.
But What About When I Then Need To Buy A House?
If you consider two things, your monthly mortgage payments and the approximately 20% increase of home prices over the past year alone, the equity you have built in your current home can be substantial. This is extremely important to take into consideration as the equity that you have made can often times be enough to cover the down payment of your next home, or at least a large portion of it. A Gallop poll showed that the equity built in your home is just one of many reasons why real estate has been rated as the best investment you can make for the eighth year in a row.
How Much Equity Do You Have?
If you would like to learn more about the equity you have built in your current home or how much equity you actually have, please reach out to me today and I would be happy to sit down with you and look over those numbers. I can be reached at 707-210-5500.