Even though interest rates have risen and the short supply of homes for sale has pushed up average selling prices, these average price of a home selling here in the Napa Valley is still only only two thirds of what their 2007 peak was. For Napa County residential sales in 2007, the average was $864,297. This figure for May 2013 is $577,349 which is 66.8% of the high. The same for the City of Napa, in 2007 $797,268 and in 2013, $534,742, 67.1%.
The point I am trying top make here, it may still be better to buy than rent. Again, this is very much a location story for this is not true in every area. If you are in an area where home selling prices are higher, then it generally makes sense to rent. A perfect example is depicted in the Buying vs. Renting chart below for the state of California from the California Association of Realtors, C.A.R., in their monthly graphic the send out called One Cool Thing.
If want to see if it is better for you to buy than rent for your area, here is a great calculator from Yahoo, Should I rent or buy a home?, and another, simpler to use one from the New York Times, Is It Better to Buy or Rent? Another useful resource is an interactive nationwide map from Trulia, Rent vs. Buy: Which is Cheaper for You? in which you can change the loan interest rate, your tax bracket and how long you will stay in the home.
For more info on this topic, here are three links to some of my past blogs:
Let me put my nearly 30 years experience to work for you and help you get the perfect Napa Valley property, please contact me