I have been showing property here in the Napa Valley several times over the last two weeks and have noticed a distinct slowing of sales in price ranges above $300,000 . Below $250,000 and perceived to be a good deal properties are still selling fairly quickly, but they really need to be a deal. An example is a property I was considering making an offer on for myself: built in the late 1940’s, a 2 bedroom, 1 bath, 770 square foot fixer for $125,000 which need approximately $25,000 in repairs based on a verbal bid from a contractor I regularly use. I decided not to proceed when I found out there were 25 offers. It sold for $155,000, not a bad buy even at this price .
Yet, I just showed a 3 bedroom, 2 bath, 1,506 square foot newer home which once sold for $695,000 in October 2005 which is currently on the market for $382,000 and has been so at this price with no offers since December 9th . Just a few months ago, this home would have had multiple offers on it and was in escrow for $449,000 in August. There were several other properties I showed my clients which would have had the same multiple offer results just a short while ago.
Here is the link for what I currently consider the best buy in the City of Napa, 40 Firefly Lane.