LAKEPORT >> The effects of the Valley Fire to the Lake County real estate market can be divided into short-term and longer-term categories. Short term there will be an increase in the demand for rental properties while affected homeowners regroup and rebuild.
Prior to the fire Lake County was experiencing a steady growth in real estate prices of single family homes. Over the first six months of the year the median price of single-family residences increased to $195,000 up from $170,000 in the last six months of 2014 and up even further from $165,000 in the first six months of 2014. Inventory levels have been running as low as four months and as high as eight months over the last year.
In the short term real estate prices may fall especially in those areas directly affected by the fire as the disaster discourages potential buyers who were previously interested in moving into the area.
It is possible that existing property values will rise in areas that were not affected by the fire as the number of available units in the county has been significantly reduced and the remaining homes in the affected area will be sparse.
Reconstruction of homes will boost the economy and help mitigate the loss of sales due to the fire. The county’s ability to react quickly will play a role in the recovery and they are already looking at temporary measures including setting up a reconstruction center in south county to handle the permitting process.
The longer term affects should include the building of structures that are up to current codes and specifications which should provide higher quality housing throughout the county. It is expected that people will repopulate the areas that burned. The Cobb area is attractive to those seeking a mountain retreat, the Middletown area is a close nit community with its proximity to Napa being a plus and Hidden Valley Lake offers amenities that are attractive to many buyers who are seeking a gated community with a golf course, a lake, club house, restaurant and more.
“I expect that short term the Lake County real estate market will see a decrease in the number of sales, but the reconstruction efforts will help offset that loss and provide a boost to the economy,” stated Yvette Sloan, president of the Lake County Association of Realtors. “Longer term the real estate market will recover as it is human nature to pick up the pieces and rebuild, and from that perspective people in Lake County are no different than anyone else.”
