LAKE COUNTY >> Lake County’s real estate market has assumed an uphill climb and quality, profitable wines may be the instigator — reliable wines come from reliable growing conditions.
“We’re Northern California’s best kept secret,” said Konocti Realty agent Mara Eichelmann, referring to the county. “Growers are buying up property.”
That secret might have worked its way down the grapevine. In the past year, realtors sold fewer properties at a far higher price than the previous year. Eichelmann said the promise of award-winning, tasty wines has boosted market values. Lake county vineyards contribute to many well known labels such as Thorn Hill, Obsidian Ridge, Shannon Ridge, Steele Winesvand Brassfield Estate, to name a few. The county is home to many productive vineyards, including Beckstoffer.
According to the California Regional Multiple Listing Services, 50 properties were sold in 2015 at prices ranging from $87,000 to $995,000, averaging at a price of $437,418. Sent fresh into history, 2016 saw only 22 sales in Lake County, but those sales ranged from $175,000 to $1,125,000, setting an average of $453,386.
This 3.7 percent increase over the previous year owes itself to a few different factors, but Eichelmann said American Viticultural Areas such as the Red hills. Hidden Valley and Buckingham have also become realty hotspots.
“That area is rich in red soils, specifically great for red wine varietals,” she said.
Steele Wines Executive Assistant Pamela Duncan said that very same soil has drawn property owners into the vineyard business.
“Every year there are more and more grapes planted here,” Duncan said. “People may have had property at that time, maybe raising cattle, but they’ve decided to plant grapes.”
Lake County vineyards produce close to 38,800 tons of winegrapes worth $63.4 million. Acreage dedicated to winegrapes increased to 9,454 in 2015. The grapes now bring in the third highest average price per ton in the state.
It’s no secret that Lake County offers far cheaper homes and properties than neighboring wine country like Napa and Sonoma. Granted, Duncan said many labels originating from neighboring counties source their grapes in Lake County, even if they’re unwilling to place that on their labels.
Other factors also play into the market shift. The Rocky and Valley Fires destroyed homes and properties; those smoked out of their homes look to buy new property as well as sell burned lots for the sake of rebuilding.
As for upcoming market shifts, Eichelmann said recent changes in government, including the election of President Donald Trump, will likely have an affect. Moreover, recent marijuana growth ordinances, Federal Housing Administration and mortgage premium tweaks.
