HUGE California appreciation this just in

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HUGE California appreciation this just in

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Napa county grape land.. Prime valley floor  Rutherford bench etc.. set all time highs

average price per ACRE 317,000  last year 270,000.  14.9% appreciation year over year.

I know of some prime Ruthorford bench properties that eclipse 500k per acre.. now to be fair this is planted to award winning Cabernet grapes...

Still stunning... I remember when we were selling this ground in the mid 80's at 10 to 15k per acre.

who would have thunk it.

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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
10y

Bubble 

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  • Michael Evans
    General Contractor · Palm Desert, CA · Member since 2016 · 193 posts · 79 votes
    10y

    In 1990 bought a duplex property on Marsh Road in Redwood City, CA. There was an exiting 2 bdrm, 1 bath house on the property. I rehabbed the house and I added a second 3 bdrm 2 bath unit and put tenants in both units. I lost the property in the 1993 recession.

    In 2005 I purchased a home in Indian Wells, CA built in 1985 for $1.1m. I rehabbed it, spending $300k. Every Realtor I talked to said it would be worth $1.6 after rehab. It sold in 2009 for $820k short sale.

    This is a real leap of faith to try flipping again. 

    Mike Evans

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  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    10y
    Originally posted by @Jay Hinrichs:

    Napa county grape land.. Prime valley floor  Rutherford bench etc.. set all time highs

    average price per ACRE 317,000  last year 270,000.  14.9% appreciation year over year.

    I know of some prime Ruthorford bench properties that eclipse 500k per acre.. now to be fair this is planted to award winning Cabernet grapes...

    Still stunning... I remember when we were selling this ground in the mid 80's at 10 to 15k per acre.

    who would have thunk it.

    Jay  my cousin just moved my Aunt and Uncle from Long Island NY to Napa Area young folks in there early 80s.

    Huge house compared to what I am used too.

    Hope all is well

    I am sure they paid a pretty penny for their home.

    Alex

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Michael Evans  Timing is everything.. I have a 4 acre site I bought in Rohnert Park CA. for 27k in 1995 Tail end of CA RE recession... Its on the market for 3 million. .and I would probably entertain 2 mil right now ! 

    how did you lose a cash flowing property in Redwood city ?  or was it negative ?

    I fully understand the palm springs up and down market though its like a yo yo there.. its totally dependent on what's happening in LA and SF to an extent and other parts of the country.

    I almost bought a second home at Rancho La quinta for just under 1 million in 08  I would have certainly lost that if I had pulled the trigger  LOL

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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    @Alex Franks  prices are all over the map in Napa you can buy for sub 400k.. and can pay 30 million

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  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Alex Franks  prices are all over the map in Napa you can buy for sub 400k.. and can pay 30 million

    Little over $9m is what my cousin paid  3 years ago his retirement palace...

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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    @Alex Franks  that be nice digs in any part of the US... Hands down I personally think the napa valley is the best place in the entire US to live... I simply loved living there.

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  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
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    @Jay Hinrichs I should be staying there for week in late Sept. Yes I see pictures constantly and very nice place and area.

    I just like my country living two cars go up my road and that's major traffic.

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Alex Franks end of sept is prime time in Napa... its the crush.. and depending on when you go the PGA tour stops at Silverado were I used to hang my hat... you will love it.

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  • Michael Evans
    General Contractor · Palm Desert, CA · Member since 2016 · 193 posts · 79 votes
    10y

    The Coachella Valley has Larry Ellison's Indian Wells Tennis tournament, 300 days per year of sunshine and the biggest music festival in the WORLD, 3 weeks in April and 2 weeks in October. How is this not a Real Estate destination?

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Michael Evans  for sure it is.. 8 months out of the year then its blazing hot.. most of the money folks retreat to the coast or whence they came..

    Napa is more year round but its quiet in Dec thru feb for sure.. opposite of your area.

    but its only 1 hour to SF  1 hour to coast 2.5 hours to Tahoe.. etc etc.. lots going for it.. but its simply my personal opinion.. I lived in the desert back when I had the luxury of a winter home ( like in Oregon and its the pitts in the winter.. )  so I spent 4 months in the winter there many times in La Quinta.. I get it.. but its still pretty boring if you don't play golf and have a ton of dough to join one of the top clubs.. I prefer Vegas over this area now.. much more to do.. Little colder but not much

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  • Michael Evans
    General Contractor · Palm Desert, CA · Member since 2016 · 193 posts · 79 votes
    10y

    I lived in Rohnert Park for 3 years in 1984-87, same climate as Napa. You're right the weather is great! Especially if you can spend the winter in La Quinta.

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Michael Evans  well I bought that 4 acres on a lark.. and low and behold Graton Indians build the largest gaming casino in all of Northern CA right across the street from me.. bring in all the UTLS city zones me mixed use residential.. and if you know RP there is NO new construction literally NONE huge housing crisis.. so we are just going through planning at the moment.. I really want to build it out. when I get it all approved I will probably move there for the 2 to 3 years it takes to build it out then call it a day.. at least that's the plan..

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  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    Bubble 

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  • Jason V.
    Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Alex Franks  that be nice digs in any part of the US... Hands down I personally think the napa valley is the best place in the entire US to live... I simply loved living there.

     You know what the worst part about California is?

    All the Californians! 

    (And don't anyone get your man-bun all twisted up, it's a joke!)

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Ian Walsh  NO BUBBLE when your talking the finest grape growing region in the Entire US and second only to the very best of the French growing sites... there is only a finite amount of it.

    and there are more rich multi millioniares and billionares that buy this stuff than there is land to go around... NO bubble not even close.

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  • Ryan Heywood
    St. Helena, CA · Member since 2016 · 147 posts · 59 votes
    10y

    Jay, where are you getting these numbers from, something published by the NV Vintners? I'm assuming that average is for planted land.

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  • Ryan Heywood
    St. Helena, CA · Member since 2016 · 147 posts · 59 votes
    10y

    @Jay Hinrichs

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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    @Ryan Heywood  right out of the front page of the Napa Register.. which I read daily. when I am not on BP...

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  • Michael Evans
    General Contractor · Palm Desert, CA · Member since 2016 · 193 posts · 79 votes
    10y

    Anybody flipping houses in Rohnert Park?

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  • Carrianne Mucho
    Lender · Roseville, CA · Member since 2011 · 205 posts · 86 votes
    10y

    @Jay Hinrichs sounds like a fun project. Developments are time consuming but it is so exciting to see the transition from dirt to completion. 

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Carrianne Mucho  yup time consuming RISKY etc.. I was the lead on the last phase of Lake Wildwood estates in the late 80's plus the broker I had listings on all 127 lots of the first phase of 540 lots... and then the war and Earthquake hit... if that did not happen I would in all probability be living in Penn Valley or Wildwood..

    we are in good cycle now I actually got 30 new builds to market this year and sold them all. LOL

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  • Carrianne Mucho
    Lender · Roseville, CA · Member since 2011 · 205 posts · 86 votes
    10y

    @Jay Hinrichs Very familiar with wildwood!  Got hit hard in the last recession but values seem to be recovering lately...especially lakefront but Nevada County is always a little slow to catch up. 

    Placer County is hot right now...tough to find deals. Properly priced listings move fast, land with margins is hard to find and permit fees are through the roof.  We need municipalities to reduce fees to pre-recession levels now that they are getting volume. How are they in OR?

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Carrianne Mucho  permits are 12k low side  rural towns.. to 50k  inner city PDX  Lake Oswego.

    I just put 3 in for Oregon city 33k each.

    I really like Charleston SC  we have 11 going there and they run about 5k total and are ready in 30 days... LOL.

    If you drive over the dam at Wildwood and go to the last right to enter that was the 5th phase we bought that out of bankruptcy in 1985 ish.. took 4 years to get approved I did the first Mello Roos in Nevada county... we got it all entitled and lots ready to build I had them all reserved on a Pink and the war and earthquake hit and I did not CLOSE a single escrow  talk about devastated.. LOL  it sat fallow until early 2000 when the bonds got cleaned up lots got sold and when I was there last summer its all built out.. kind of proud to know I did it.. but not so proud to know I lost millions on the deal  :(

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  • Carrianne Mucho
    Lender · Roseville, CA · Member since 2011 · 205 posts · 86 votes
    10y

    @Jay Hinrichs travesty!  You win some you lose some. 

    I've always wanted to visit SC...sounds sweet!!  

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  • Jay HinrichsBusiness Member
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    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Carrianne Mucho  yup if I was not so invested on the west coast and was looking for a new place to live it would be one of my first choices.. but you would need to be a water dog... its surrounded by water. and us Californians are used to mountains and they don't have any of those.. but culture great food , ( have to import your wine).. nice people and a robust Real estate economy with thousands of potential rehabbers.. since the city is so old  2nd oldest in the US> 

    I just close on one I was going to rehab.. turned out the termites caused so much damage its a demo job.. but not to worry new construction there will be just fine :)

    check out  74 America Charleston  SC  this is one I just sold last month.. this is what we are building there selling at 225 to 250 a foot finished

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