Happy New Year from all of us here at Jenny Heinzen Real Estate! Pop the sparkling wine and unwind for a few moments as we share an inside look at what you can expect from the Central Coast vineyard real estate market in 2022.
Land Values Continue to Soar
Vineyard properties continue to be wildly in-demand. Across California, land values rose 20-30% over 2021 and we see no signs of slowing. Wall Street is seeing investors flee traditional commercial spaces in favor of the agricultural sector with increasing private equity investment. From lifestyle to institutional investors, buyers of all stripes are making bold moves to seize the opportunities they desire.
Agricultural Real Estate on the Rise
According to Tony Correia, a leading authority on the valuation of vineyards and wineries, “There is an enormous mountain of money out there. Investors are leaving Commercial real estate such as office buildings and moving into the farming sector including vineyards because they are sexy.” Keep in mind, land prices will continue to move consistently higher throughout the year. If you’re considering selling your Paso Robles vineyard property, 2022 is an ideal time.
Cautious Optimism
While the vineyard real estate market is thriving, do not expect a repeat of 2021. Last year a number of factors contributed to a historic market from strong grape crops and solid prices to low interest rates. Looking into the year ahead, it’s important to be aware that inflation is here, starting with levels unseen for over three decades. As a result, the Federal Reserve is thought to transition toward a more hawkish economic stance this year, starting with a probable increase in interest rates. Plus, vineyard profits are more than likely to be trimmed by higher input prices for the 2022 crop. However…over the past two years, motivated lifestyle buyers have driven a demand for wine country living and the market demand for grapes increased. These drivers indicate 2022 is positioned to benefit from the ongoing trend. The future looks bright to us!
What do you want in 2022?
California’s #1 Vineyard Realtor, Jenny Heinzen is here to ensure you reach your most ambitious goals this year. Contact us today to learn more at (805) 260-0581 or [email protected].
Cheers to you and your success!
