Second homes: Napa County bears fruit for home seekers

ByABC News
June 25, 2009, 5:36 PM

— -- Though winemaking in America's cradle of viticulture dates to the 1860s, Napa did not gain prominence until Robert Mondavi opened the first large contemporary winery and welcomed visitors in 1965. This, and a surprising victory in a blind wine tasting against France in 1976, led Napa to explode with restaurants, tourist attractions, hotels, spas, residential developments and wineries.

Less than half the size of neighboring Sonoma County, all of Napa is convenient to the San Francisco Bay Area and Sacramento; both are about an hour away. The county has retained its rural agricultural feel. Well over half of the 136,000 residents live in one larger city, Napa, and the rest are in small towns, many with just 3,000 to 6,000 inhabitants. Traditionally, vacation-home owners ignored Napa proper, but that is quickly changing.

"The entire county is now a second-home haven," says Mike Silvas, owner of Morgan Lane Realtors. "The city of Napa was blue-collar for decades but is undergoing a renaissance, with new hotels and a gorgeous riverfront mixed-use project. The condos there and in the hotels are almost entirely second homes." Southern Napa County is the more affordable area and closer to San Francisco.

Another recent change in second-home desirability is Calistoga, the county's northernmost major town, which was once considered somewhat isolated. Silvas says it has thrived thanks to Calistoga Ranch, a large resort development offering luxury hotel services and fractional ownership in two-bedroom cottages from $475,000 (calistogaranch.com). "It's been very popular with people who don't want to spend millions."

The median cost of residences for sale exceeds $1 million or double that in nearly every popular town, but prices in most begin around $500,000. The exception is the Rutherford/Oakville area, where virtually nothing is offered for under $1 million.

A look at three Napa neighborhoods