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We have been keeping track of vineyard values and sales of the last 60 years. On our web site we have a graph showing the average price per vineyard acre or each decade since 1950. The sales data and graph shows that vineyards have appreciated from 100% to 300% every ten years in both Napa and Sonoma Counties, solid evidence that vineyards are great investments in one of the most premium wine grape growing regions in the world. One thing we’ve learned is that even the best investments can take a hit when the entire economy gets turned upside down.
There are all sorts of reasons why people wish to get into the wine making business. Reasons range from “My wine making business has out grown the garage,” to “It’s Romantic,” to “I like wine,” to “I’m drawn to it,” to “Make money,” to“I want to change my lifestyle,” to “It looks like fun,” or “I want to add another winery to my portfolio.” You can see there are many different reasons to get into the wine business Calls come in from people all over the world that say, “I want to buy a winery”. The first question is… why?
As the old saying goes, do you want the good news or the bad news first? Well, since we are all pretty much aware of the bad news, let’s start off with some good news. Living in one of the premiere grape growing regions of the world has its benefits, even in a horrible economy. Wine sales volume is actually up!
Now that the harvest is complete, we’re tucking the vines in for a winters rest, maintaining our equipment for another season and starting to reflect back over the year’s events. What a year it has been, last spring had everyone running in circles with frost, rain, heat and cold all occurring within one month. Now, as the tail end of the growing season is coming to an end and we are fairly confident most folks are glad the hard part of the year is behind us. Looking forward it is time to celebrate the holiday season with a little rest and relaxation thrown in for good measure. As always we take this time to give thanks and ponder what the next year has in store for us.
In our last article we talked about the coming Grape shortage by mid 2009. However with fickle Mother Nature, we have a turn of events. Normally the grape farmer begins to feel confident around April 15th, the date that we stop worrying about frost. We never have frost that late in spring, right? As the old saying goes, “Never say never.” Mother Nature had a rude surprise for us in the last part of April. Someone must have really made her mad, because it appears that the North Coast grape industry may lose 10% -50% of its crop in 2008. Some areas were hit much harder than others where record breaking temperatures were as low as 24 degrees.
Wine sales are up, grape prices are climbing and this year we are experiencing a short grape harvest. This will push demand and grape prices up, the vineyard values are climbing faster and faster, the bottom of the housing market is getting closer every day, and some of the higher priced properties are still selling nicely. So, where are the rest of the real estate buyers?
Here we are more than half way through 2007 with what appears to be a healthy crop in Napa and Sonoma Counties. Moving towards harvest we should hope for a more normal year than the previous two harvests. With increased demand for wine we can hope to alleviate the flood of fruit that has swamped the bulk wine market for the last few years.
With continued positive news about wine sales and what we hope will be a recovery in broader grape sales market over the next couple of years many potential vineyard and winery buyers will certainly take notice. With that in mind we thought it would be a good time to talk about some tips for both buyers and sellers of wine country real estate.
Buying and Selling wine country properties is not like buying a home in a residential neighborhood, or purchasing a shopping center, an apartment building, industrial properties or any other real estate for that matter.
Fall is upon us once again with the crop finally settling in tanks throughout our lovely wine country. Yellow and crimson fill the countryside with the chill of winter not far off. It is once again time to give thanks for our families, friends and our beloved wine country as the holiday season is here. Upon further reflection, the next time you are enjoying your favorite glass of wine think about what our forefathers had to overcome in order for us to enjoy this fortunate way of life. In our latest article we are going to look at an abbreviated history of how the wine country in Northern California progressed into one of the premiere wine growing regions in the world.
You could say we entered 2006 with a BANG, not only were there torrential rain storms and flooding, but there was also tremendous momentum in vineyard, winery and estate transactions. To put it mildly the first part of the year in our business was hot and heavy. In January, our open escrows totaled more than half of our entire sales of the prior year, and 2005 was a banner year. 2006 looked like it was going to be off the charts. Then the sun came out in May and the buyers went on vacation.
As we move into the full growing season amid the summer sun, some sneezing and great expectations for the 2006 harvest the wine and vineyard market continues to improve. Vineyards and wineries continue to sell as noted by such high profile sales of the Cult Winery Screaming Eagle in Napa and the Chateau Souverain facilty in Sonoma County to Francis Ford Coppola. Many other sales of vineyards and wineries have taken place albeit to a bit less fanfare. Cautious optimism remains high throughout the wine country.
- Wine Country real estate market heating up
The tide has turned and the wine country real estate market is heating up. Vineyards, wineries, and raw land are starting to move at pace we haven't seen in quite some time. This article describes why the wine country real estate market is coming out of its recent slumber.
- What goes around, comes around
It's starting to happen, the market is changing as we start to see the grape glut and weak wine market in our rear view mirror. We're even starting to hear the term "shortage" being thrown around. A grape shortage combined with an increase in the number wine drinkers and improving economy can only lead to one thing. As the old saying goes - what goes around, comes around.
- Is the glass of wine half full or half empty?
As doom and gloom hangs over the market through a relentless thrashing from the media one thing is consistently overlooked, quality. We've said it before and we'll say it again qaulity is king. In our latest report you will see how each wine growing region stacks up and why we believe your dollars are best spent on premium wine growing regions.
- Vineyard cycles, and the next decade
Much has happened since the beginning of 2002. While the economic rebound we expected has been anemic at best and it's popular knoweledge that grape prices are in the gutter one thing has never been clearer. Premium quality grapes, vineyards and wines are still going for top dollar. This article details the continued upward momentum of vineyard values through the peaks and valleys of the ever present vineyard cycle.
- Roller Coaster Ride Of The 1990´S And Future Vineyard Values: The 2001 Report.
As we look back at the last 10 years a roller coaster of vineyard values is very apparent. Between the recession of the early 90's and the boom in the later part of the decade one saw many gyrations in the market. One thing is for sure though, through 10 year intervals vineyard values have steadily increased in value and this article points out the "why's and how's" as well as what to look for in the future.
- A year in the life of a vineyard.
Ever wonder what it's like to watch a vineyard transform through an entire growing season? If so then this article is for you. There are many pictures showing the different stages of transition from bare vines to bud break all the way through to harvest.
- It only costs a nickle more to go first class.
As the old saying goes, "You get what you pay for." Like anything that one buys, we find that it is better to spend a little more money to get the best quality. This is also true when buying vineyard property. This article supports the importance of focusing on premium qualities in a vineyard and it's fruit.
- Analyzing a vineyard investment.
The typical buyer that wishes to move to the wine country wants a home, or land to build a home. In most cases they wish to have some vineyard on their property. In some cases they wish to incorporate their desire to live in the wine country with the financial investment and return of a vineyard estate property. This article will take you through the process of purchasing your wine country dream property.
- Napa Valley vineyard values past, present and future.
Do you think its's all about the romance, gorgeous views, decadent food and wine? Ofcourse it is! Nonetheless, this article points out a 10 year trend line on the varying prices for vineyard land identifying the average prices and highest prices paid per year.
- Olives. In the Wine Country?
Move over grapes, the olives are coming. As olives thrive in much the same micro-climate as grapes, our wine growing regions have seen thousands of new olive trees being planted recently. Find out who, why and the history in this article.
- Vineyard Values for 1999.
Not very long ago Napa and Sonoma Valley's wine industry was in near panic mode. Those of us who follow the industry heard apocalyptic tales of the coming crash which would be due to either a glut of grapes on the market or financial ruin brought on by phylloxera, a root louse that was methodically destroying thousands of vineyard acres as it had done a generation earlier. Find out what's really going on.
- Have your grapes and drink them too.
How would you like to experience spellbinding sunsets, picturesque countryside views, a Mediterranean climate, world class restaurants combined with a small town atmosphere and get paid? Sound to good to be true? Better hurry up and read this article.
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