Are Solar Panels Right for You?

There has been some discussion on industry blogs over the past couple of weeks about whether or not leased solar panels are a good idea if a family or individual is thinking about selling. The Pacific Union blog cited a study by the Lawrence Berkeley National Lab which shows that potential buyers are willing to pay up to $4 per watt of energy produced by solar panels, which roughly equals $15,000 per home. Over 22,000 homes were analyzed throughout the nation from 2002-2013.

However, that number is for purchased solar panels and does not address the question of leased solar panel systems. That’s a whole different nut altogether. The number of leased solar systems is starting to crop up more and more throughout South County and even in Napa.  Many individuals lease systems because they want to go green and they get to save some money on electricity.  Who doesn’t like to save a buck? The catch is that many of these leases are 15-20 years.  Once you get 3-5 years into the lease the presumption is that the technology is already obsolete.  Who wants to buy outdated technology? Coupled with severe restrictions on uses for the solar panels and some of these leases might not be in a new owner’s best interests.

I have seen a deal almost fall apart because of a solar panel lease. The sellers didn’t want to take the lease with them to their new home and the buyers didn’t want to assume the old lease.  All indications are that we are going to see more and more of this over the next few years.  All of which still begs the question, should you put solar panels on your home? I think that if you are going to buy the system outright and put it on the roof than it will only add value; if you plan on leasing a system where there isn’t a true buy-out, it will only add frustration when it comes time to sell.

Return of the Napa Tour!

It has been back to business as usual this week as agents come out from hibernation otherwise known as the Holidays. It was a robust tour for the first week of January (17 homes!) which is really nice to see.  There was also a diversity in the homes on tour today which is important to see.  Town homes, million dollar estates, and single family residences were all on display today.  There were two homes that really stood out for me today.

First was 9 Huntington Ct, listed by Jill Levy with Heritage Sothebys for $1,395,000.  It’s hard to talk about a million dollar home being undervalued, but it is.  It sits on over 1/2 acre backing up to Browns Valley Road.

With a dramatic entrance (I will be honest, I’m a sucker for columns!) outside and inside, this custom built home is a true masterpiece.  More columns! a vaulted ceiling and French doors with a view to the backyard invite you as you come into the home. It has an inviting, open lay out with room for entertaining, but not so overwhelming that one can’t snuggle up with a good book and feel cozy. It has a gourmet kitchen that looks out into the main living area with ample room for everyone to gather around despite your best intentions.

Kitchen

Backyard

The backyard has its own built in kitchen with multiple water features to help deaden the noise from Browns Valley Road behind (which isn’t all that bad to begin with). There is definitely some unique coloring and wall paper throughout the home, but these shouldn’t be a deterrent at all. It is a great home with a great feel.  If you like entertaining, this is a great buy.

Second was the town home on Cayetano in Oak Creek Village, offered at $515,000 through Mary Trumble with the Wine Country Group Better Homes & Gardens.  I was so taken with this home that I did a quick post on Facebook earlier. This is a 2 bed, 2 bath home, ~1750sf. It has a cute front yard that wraps around to the back.  The back deck that leads to a gate to the community pool. There are, essentially, two master suites – one down stairs and one upstairs. Walk through the bathroom of the master suite to a loft overlooking the entire living area; perfect for an office. It has an updated kitchen and a dining nook.  It feels very private which is a great plus.

Contact me today to take a look at these two properties or to get a list of available properties in the Napa Area: (707) 853-0797

And We’re Off!

Happy New Year, Everybody!

The returns are still coming in for last year in Napa County (in general) and American Canyon (in particular) but it was another strong year price-wise, although the number of units dropped dramatically in American Canyon year-over-year.  In 2013, 198 units were sold in the City, compared to 136 homes sold in 2014 which is an approximately 30% drop in home sales.  However, the median sales price in American Canyon rose 11.2% to ~$409,000 in 2014.

It was an odd sales year for American Canyon. First, as this chart above shows, beginning in January and continuing through April (and most of May as well) there was a severe shortage of homes on the market in the City. This lack of inventory caused housing prices to surge heading into summer (particularly in regular sales).

As housing prices started to increase, a wave of homes crept back into the market.  The number of homes for sale jumped from four in April to 12 in June and July and continued to increase from there.  One statistic that had a lot of realtors concerned about the city was the amount of sales versus the number of homes on the market throughout late summer heading into November.  The number of homes sold dropped each month from July (11) to October (7).  There was a rebound in November although the median sales price held relatively constant from September through November.

Overall, the American Canyon market appears to be on solid footing.  There is a healthy cross-section of inventory currently on the market. Homes are still coming onto the market and are still being sold even in December (traditionally a very slow time for Real Estate). Most economists believe that housing prices will continue to increase by 5-7% this year which should be good news for homeowners.

I, for one, am looking forward to seeing what the housing market brings to my city over the coming year.  It should be very interesting indeed!

Buyer Optimism at New High

The latest “cool thing” infograph released by CAR shows that 81% of buyers believe housing prices will continue to rise over the next 5 years.

This is virtually double the number in 2011 and shows that confidence in the housing market continues to grow. While much of the data that is being released these days shows something of a schizophrenic market, almost all economists agree that the underpinnings of the current real estate market is strong.  While some areas within the Bay Area are continuing to see price increases  at a stunning pace, much of the rest of the SF Bay Area market has been leveling out, suggesting that we’ve shifted from a seller’s market this past spring to a buyer’s market this fall.

It will be interesting to see how sellers react to a glut of inventory that is just hanging around this fall.  Will they pull their homes and wait for the traditional spring selling season or will they stay active and hope for the best?

1571 Tallac, Napa – Open House, Sunday 10/5 from 11-2

Holding 1571 Tallac St open tomorrow from 11am – 2pm.

Exclusively listed by Stefan Jezycki with Pacific Union and offered at $435,000. 3 bedrooms, 2 baths and approximately 1144 square feet. According to the marketing description, this Bel-Aire home is in move-in condition.  Single level, the kitchen, bedrooms and living rooms have all been freshly painted. Beyond a fresh coat of paint, the kitchen has also been updated with a new gas range and counter tops.

10/3/14 – AmCan Market Update

Preliminary sold numbers show a slight retreat year-over-year, but overall the American Canyon housing market is relatively strong and stable, particularly for those 1st time home buyers.  The number of sales dropped by almost 50% year-over-year with a similar – but lesser decline in median price sold. There has been speculation that the earthquake has had a dampening effect on the market; coupled with an ever increasingly earlier start time for school and then a typical leveling out of the market, this is almost to be expected.  In fact, it may even be healthy for the market in the long term since these double digit price increases were untenable for any great length of time.

With interest rates still low (and not expected to rise until after 1Q), it’s a great time to buy in the city. Currently there are 26 homes on the market at a median list price of $485,400. In particular, we had the opportunity to see 417 Knightsbridge Way a couple of weeks ago.  I almost can’t tell you what the home looks like inside because the backyard is absolutely stunning because of it’s size. This is listed by Henny Gho with Eagle Vines at $459,000. It backs up to open space and so the backyard feels even larger than it is.

This home was sold this past June, renovated and is now being flipped. Updated kitchen, hardwood floors throughout; the home has a newer roof. 4 beds, 4 baths at approx. 2000 sf. Light and airy, I loved having the chance to see this home.  Much like yesterday’s tour, this home had a uniqueness that is often missing in the AC.  Contact me if you are interested in previewing it.

(707) 853-0797 or richard.peterson@pacunion.com

 

10/2/14 – Napa Tour Update

What a great day for tour, today! For the first time in a while, there were some truly custom built homes.  As a Realtor(R), especially in American Canyon, I get used to seeing cookie cutter homes built and designed by the typical developer.  And while these homes aren’t bad, by any stretch of the imagination, it becomes very easy just to run in, check out the floor plan, nod knowingly and then scoot on to the next home.  Today was definitely not that kind of day.

There were 2 homes on the first half of the tour that really stood out for me.  The first is 1610 El Centro Ave (off of Jefferson).  It’s listed by Brendan Lesti with Windermere Napa Valley Properties and is selling for $729,000.

LR Bar

Master Bedroom

LR Fireplace

These pictures do not do this home justice.  It is a flip. It sold last October for $470,000.  In fact, I remember seeing this home last year and the difference is just stunning. Gone is the dated fireplace, replaced with a new, sleek marble fireplace; the orange shag carpeting has been taken out and replaced with strand bamboo flooring throughout the home. The kitchen has been almost completely redone with quartz counters and a 5 burner commercial refrigerator and a built in wine bar. The home is 4 beds, 4 baths and approximately 2458 square feet on almost 1/5 of an acre. It’s vacant and easy to show.

One of the great things about living in the Napa Valley is the views. This one is taken off the balcony from 170 Canyon Dr in the Silverado Country Club, listed by Teresa Davis with Pacific Union at $3.495M. The house is immaculate and is custom built. You can literally see across the entire Napa Valley. Unfortunately, my phone just can’t quite do it justice.

My last stop on the morning half of the tour was 1061 McKenzie Drive off the Silverado Trail (about 1 block down from First St). Listed by Karen Cherniss & Kim McPherson (more Pacific Union Agents) and offered at $975,000 this is a one-of-a-kind home. This home was on earlier in the spring (with a different brokerage) and brought back by Karen & Kim.  It was a last minute ad-on for me and I am extremely glad that I stopped by.  Unfortunately, I left me phone in the car so no (blurry) pics of this one.  It’s a little over 1 acre and the property goes all the way down to the Napa River.  Short walk to Oxbow (you can see Copia from the deck!) but I felt like I could be out on Big Ranch Road, 20 minutes away from town. This particular home is for a buyer looking for rustic charm while still being close to everything! I’ll be honest, when I walked in I felt like I was back home in UC Berkeley Professor’s home. It’s open this weekend, but is also easy to show.

Happily, the second half of the tour met the high standards that the first half set. 251 Caswall St. is one of those homes that just grows on you. Listed by Rob Pursell with Sothebys and offered at $1,15M. Single story, ranch style home; 3 beds, 2 bath and approx 2602 sf.

The lot is about 1.7 acres with a small “gentleman’s vineyard.” It’s on City Sewer & water which is a huge bonus for these homes on the outskirts.

The last home that I saw this morning was 4036 Browns Valley Rd. Set back from the street, this 5 bed, 3.5 bath, approx 3059 sf home exudes personality. It’s listed by Lauren Nicholsen & Elise Currey with Pacific Union (yep, we had a lot of them on tour today!) and offered at $1.395M. Traditional farm house, it’s the first time that it’s been on the market in about 30 years. The sellers have obvious pride in ownership of their home and upgrades are evident throughout.  They created a large formal dining room to allow them to entertain.  There is color throughout the home but is muted (and enhanced) by the black and white flooring as well as the black and white tiled kitchen. Complete with a large lawn and gated pool, this home is just special.

As always, if you’re interested in this or any other home, give me a call and I’d be happy to set up a showing for you.

Rich Peterson (707.853.0797; lic# 01931815)

Jumbo Borrowers get a “Jumbo” Break

Buried in the news cycle last week was a piece on CNNMoney titled, “For rich people, mortgages are getting cheaper and easier.” Our very own Pacific Union blog picked it up today and I thought that I’d add my own 2 cents (give or take a half pence). According to the article, many individuals who qualify for a jumbo loan are now getting a better rate on their mortgage than the average person. According to the PU blog, in fact, interest rates on jumbo loans have been lower all summer long. For example, last week the average rate on a jumbo loan was 4.30% compared to 4.39% for a 30 year, conventional mortgage. While .09% doesn’t sound like much, when talking about a $625,000 loan, the money ads up quickly.

In addition to this, it appears as though jumbo borrowers are also getting a break on credit scores as well as the amount of money required to put down. Many of these jumbo borrowers are now only required to put 10% down and some aren’t even required to buy private mortgage insurance (or PMI). PMI is put in place to protect banks from loss on high-risk loans. Apparently, if you have enough money, you aren’t high risk. Add to this that the minimum qualifying credit score has dropped from 700 to 650 on these jumbo loans and you have a perfect storm for the more affluent borrowers.

Unfortunately, this has little to no trickle down effect on first time home buyers. Although the minimum credit scores to obtain a loan have eased over the summer, for many people who are saddled with student loan debt, their own home is still out of range.  In addition, many people who have defaulted on or had to short sell their homes during the financial crisis are still forced to sit on the sidelines, waiting for these blemishes to be erased on their credit report. However, with the glut of distressed homes run through the market over the past couple of years, many of these people may now be in a position to come back to the home buying arena.  Perhaps this is why Freddie Mac’s Chief Economist (Frank Nothaft) put out an advisory notice today saying that he expected 2015 to be the best year for home sales since 2007.

9/19/14 American Canyon Tour & Housing Update

Light tour today in American Canyon. Actually, there was only 1 home one tour: 2 Entrada Circle. Exclusively listed by Reinhard Auf Dem Venne with Agents Without Borders, this 4 bedroom, 3 bath, ~3528sf home is offered at $599,500. This is an exquisite home that has been well maintained by the current owners. There is an expansive, combination living room and dining room with high ceilings a ton of natural light as you walk into the home. Nestled in the back of the home is the kitchen, dining nook and family room. Updated kitchen with granite counter tops opens out to the family room with a fireplace. Downstairs guest suite and immaculate garage. Upstairs there is a large bonus room with French Doors that is perfect for a play room or office. Spacious master suite that includes a large walk-in closet. The owners are in process of moving out and it is easy to show.  Give me a call @ (707) 853-0797 to set up an appointment.

On another cheery note, American Canyon now has ample inventory whether you’re a first time or move-up buyer. 27 homes are currently on the market at a median list price of $499,250. 30 homes have sold so far in the 3rd Quarter at an average price of $435,025 or $197/SF. The total number of units is down slightly from the same period in 2013, but the average sales price is up dramatically.

 

 

42 Hahnemann Ln, Napa – Open Sunday 1-4pm

I will be holding 42 Hahnemann Lane in Napa open this Sunday from 1-4pm. Offered at $788,000.

This is a beautiful 4 bed, 2.5 bath home @ ~approx 2,634 sf. It features a spacious Living Room and Dining Room with Cathedral ceilings, crown molding, surround sound & lots of light! The Great Room features wood floors, crown molding, and fireplace. The kitchen features extra storage space and has a large island with bar seating and opens up to a lovely & inviting backyard with deck and fire pit! The upstairs has an open landing for office potential as well! Desirable North Napa location!