Angwin is one of the gems of Northern California’s Napa Valley. This small census-designated place has the pristine landscapes, luxurious estates, and rich vineyard products for which the valley is famous. Located within the Howell Mountain
American Viticultural Area, Angwin is prized for its unique wine as much as its quiet beauty. Moreover, Angwin strongly appeals to real estate investors, many of whom are looking for clear direction in today’s peculiar market conditions. Here are some of the trends and forecasts currently going on in the Angwin real estate market so far in 2023.
Angwin isn’t your typical American town. It’s located within a widely known and sought-after real estate niche. The entirety of Napa Valley commands a premium in the real estate market, and there’s a continuous demand for homes in the area. However, Angwin is still subject to fluctuations in price, inventory, mortgage rates, and other variables. As in much of the U.S., real estate investors have faced some unusual conditions over the past few years.
How the pandemic affected the Angwin market
The COVID-19 pandemic had notable effects on the real estate market, as ultra-low interest rates and a wave of relocations spurred an incredible bout of home buying. Prices went up and inventory went down. Today, the market has not fully renormalized, but homes are no longer selling at such a furious pace, as is readily seen in data from the National Association of Realtors (NAR)
. Nevertheless, home values have not come down, as the inventory of unsold homes remains relatively low.
Angwin housing market trends and forecast
Numerous data points can help us to feel the pulse of the market. Some of the most relevant data points are recent home prices (listing or sale prices), home inventory levels, and mortgage rates.
Home values increasing
The general trajectory of real estate prices over time is upward. This is especially true in highly sought-after markets, and Angwin is no exception in 2023. Although price growth appeared to have been exhausted in the summer of 2022, home prices in Napa County
have again been rising in 2023. Given the impressive capital appreciation that the market has seen in recent years, it’s hard to fathom that prices are still trending up, but that is the case. Unless there is a significant rise in home listing inventory or in mortgage rates, we can expend the trend of gradually rising home prices to continue. However, don’t look for extreme price growth without a significant catalyst from the market.
Home inventory remaining relatively low
Home inventory has been fluctuating up and down in 2023, and this is normal. However, looking at the total listing count of homes for sale in Napa County
, you will observe that inventory levels have recently been at some relative lows, at least compared to the previous few years. This indicates that Angwin and neighboring Napa County locales may be seeing somewhat of a seller’s market.
There are only so many homes in Angwin to begin with, and when the inventory of home listings reaches a low point, it means that there are relatively few homes available for buyers. This doesn’t mean that buyers can’t find homes, but rather that low inventory represents a competitive pressure leading to higher sales prices. Until the unsold inventory begins to rise, low inventory will likely continue to be a driver of increasing home prices.
Mortgage rates fluctuating
are an important consideration when tracking the market. Until the Federal Reserve’s interest rate hikes are paused or reversed, they will likely continue to drive interest rates — and with them mortgage rates — upward somewhat. This is because the Federal Reserve’s federal funds rate serves as a sort of minimum benchmark for what banks will charge in interest. This is the main factor driving mortgage rates.
Fortunately for home buyers, the slowdown in inflation in 2023
means that the Fed does not have an impetus for any drastic rate hikes, although additional small ones aren’t out of the question. Other than this, various small factors could temporarily drive interest rate fluctuations. For instance, Freddie Mac attributes some elevation of mortgage rates to the recent credit downgrade of the U.S. Nonetheless, the Fed’s interest rate decisions are the main thing to watch in order to see where mortgage rates are likely to go.
Angwin real estate market: Should you invest?
Angwin has an evergreen appeal to real estate buyers that persists through the market’s fluctuations. The limited number of properties available and the location of these properties within California’s Wine Country makes Angwin a lucrative place to own property. If you buy in the near future, you may have to contend with elevated prices and mortgage rates, but you will own property in an area with an established and sought-after real estate market.
Some buyers will wonder whether or not it’s better to hold out until market conditions change. It is likely that the inventory of available homes will eventually rise, but this doesn’t necessarily mean that prices will come down. Real estate prices rise over time as a rule, and it is very difficult to time those downturns that do occur. As for mortgage rates, buyers should not look for them to fall any time soon. The good news is that current rates are still relatively low from a long-term historical perspective
Sellers will likely appreciate high home prices and relatively little competition during the seller’s market that has emerged in 2023. Now may be a good time to make a move if you are looking to sell.
Buying or selling in Angwin
If you’re ready to buy or sell in Angwin
, don’t just get bogged down studying the market. Talk to an agent who’s already buying and selling in the area. Yvonne Rich
is a Napa Valley realtor with home listings throughout the best communities in Northern California’s lush Wine Country. If you’re interested in entering the market as a buyer, investor, or a seller, Yvonne can help you to follow through on your goals. Reach out to Yvonne Rich to plan your next move in Angwin or in one of the other great communities in Wine Country