The first place for second homes

Napa market buoyed by those buying getaways

By JENNIFER HUFFMAN
Register Business Writer

Janet and Brian Quint looked high and low for a second home in Northern California, from Sea Ranch to Copperopolis in Calaveras County. But in the end the couple found exactly what they’d been searching for right in their own backyard.

Recalling their many trips to wine country with friends, the Quints, who live in Marin County, decided Napa would be a good spot to buy.

Even though Napa is only a 55-minute drive from home, “We realized that physically, emotionally and culturally we were entering another world without having to drive for hours to be away,” said Janet Quint.

Springing up: Local home sales rise

Owners of a newer house in Marin County, the 50-something couple knew they wanted to buy an older home in Napa, something with “charm and character, that didn’t need a tremendous amount of work,” and walking distance from downtown, said Janet Quint.

Working with Karen Cherniss of Windermere Napa Valley Properties, the couple bought a house on Second Street last year, a home “that fit us very, very well,” she said.

As second-home buyers, they’re not alone.

According to a recent survey from the National Association of Realtors, nearly a third of all homes purchased nationally last year were bought as either vacation or investment homes.

While the total of vacation or investment home sales dropped — along with the overall market — in 2007, it still accounted for 33 percent of all existing and new home sales in the U.S.

A report from BrokerMetrics states that 41 properties worth $1 million or more sold in Napa County over the past six months, with anywhere from 184 to 242 properties worth $1 million and up for sale during that same time period.

Realtor Joe Brasil with Coldwell Banker Brokers of the Valley knows exactly how much of his business comes from second-home buyers — 34 percent.

“People buying a second home in Napa are looking for something in Old Town, walking distance to restaurants, or anything in the countryside with some sort of view that captures that essence of Napa,” said Brasil. “They want something unique.”

Brasil sees a “whole spectrum” of second home prices ranges — anywhere from $400,000 to $5 million. Buyers come from all over the Bay Area, San Francisco, the South Bay, even New York City, he said.

“Internationally too,” he added. With current exchange rates, “They can buy a lot more for their money.”

“Thirty percent of my second home buyers pay cash,” said Brasil. “And yes, the market is having some impact. But they are still out there. And they see what’s happening with downtown Napa and they know this is a great opportunity.”

“There is an allure to Napa and I think its finally catching up to its name,” Brasil said. Being a destination location “has kept us from becoming Solano County, which is going through some really tough times in the market. If we didn’t have that we’d probably have a lot more homes on the market and prices down even further.”

Katie Somple with LifeStyle Properties in St. Helena said she sees a pool of second-home buyers “hovering and waiting for the right moment.”

“Second-home buyers are looking for the quintessential Napa Valley setting,” said Somple. “They don’t buy in a neighborhood,” instead preferring a rural setting with a vineyard view. “And they don’t like fixer uppers.”

“Add money and stir,” she said. “They are busy people. They want a done deal.”

Who are these buyers and where do they come from?

“It really does run the gamut,” she said. “Oregon, Southern California, Australia …”

“Any oenophile has dreams of living in the Napa Valley,” said Somple. “We attract a lot of different people from all over the world.”

Joel Toller with Up Valley Real Estate attributes an increasing second-home market to several factors, including the spring selling season and temporary increases in jumbo loan limits. With stock market uncertainty, some wealthier individuals may transfer funds from the stock market to diversify, he explained.

“We’re getting more calls from people who say ‘I’m ready to buy something within the next six to 12 months. Let’s get the ball rolling.’”

Toller finds buyers from the Bay Area and East Coast. “They hit 55 or 60 and they are thinking about where they want to spend their retirement years,” he said. “All of them are very successful and they can afford a price range from $2.5 to $6 million.”

Mortgage rates aren’t as much of a factor for these buyers. “If you can afford $2 million, those people probably have it in cash. They’re not as concerned about interest rates, stocks or CD rates. They’re in a different category.”

Jill Levy with Heritage Sotheby’s International Realty said while the market for second homes is strong, “I think buyers are cautious on pricing, they still want to know they are getting good value.”

“These buyers aren’t in a hurry, they wait for the right thing to come along,” said Levy. “They are in a position that they can do so.”

Levy figures at least 50 percent of her clients are looking to buy second-homes. But she’s also been on the other end, listing homes sold to second-home buyers.

Anne Branson with Morgan Lane said she’s getting more calls about second homes. “Tax time is done now and people are turning their interests to real estate, and the weather is nice.”

Branson’s working with a buyer from Singapore and his family. “They love the Napa Valley. He has a lot of business he does in San Francisco but he’d rather have his home here as long as the commute is not too bad.”

To buy their Napa home, the Quints said they set a budget of $600,000 to $800,000.

Brian Quint said it’s a possibility the couple could retire in Napa.

“For now, its our getaway place. It’s so convenient. We did not buy it as an investment, we bought it because we wanted to have it forever.”

“We are enjoying it,” said Janet Quint, especially sampling the many downtown restaurants and wine bars.

But one of the biggest benefits is what happens when her husband arrives in Napa.

“He’s a new person. He relaxes. He’s happier,” she said.

“I didn’t realize what a transition it would be for him. How that could not make me happy?”

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