March 2017
Many factors impact the value of real estate. In wine country, one of the foundations is the value of our wine grape crop. From residential homes, apartments, estates, vineyards and wineries… the region depends on our namesake for a successful economy and robust real estate market. Let’s take a look at Sonoma and Napa premium wine grape prices.
The official numbers are in, and they look fantastic. Sonoma and Napa premium grape prices in 2016 were up pretty much across the board… again.
The 2016 grape crush report provides data for grape sales throughout California. In particular growers within the North Coast region are a happy bunch and wineries are working hard to find additional quality fruit. It helps that wines sales are considered to be in a healthy position as well. The market continues to look solid and follow the trend through 2017.
The chart below shows average price per ton for popular wine grape varietals in Napa and Sonoma Counties. Going back to 2014 and beyond, a positive trend of increasing prices can be seen. Also note the highest and lowest prices paid for each varietal. Keep in mind these are definitely outlier figures, but fun to see nonetheless.
| $ / Ton | ||||||
|---|---|---|---|---|---|---|
| Napa County | ||||||
| 2016 | Trend | 2015 | 2014 | 2016 High | 2016 Low | |
| Cabernet Sauvignon | $6,829 | + | $6,288 | $5,926 | $59,375 | $500 |
| Pinot Noir | $2,779 | + | $2,713 | $2,604 | $8,039 | $1,500 |
| Merlot | $3,352 | + | $3,135 | $2,978 | $20,000 | $800 |
| Zinfandel | $3,520 | + | $3,390 | $3,333 | $7,091 | $200 |
| Syrah | $3,591 | + | $3,234 | $3,175 | $8,925 | $1,000 |
| Chardonnay | $2,673 | + | $2,592 | $2,497 | $12,422 | $200 |
| Sauvignon Blanc | $2,142 | + | $2,012 | $1,909 | $5,630 | $1,298 |
| Sonoma County | ||||||
| 2016 | Trend | 2015 | 2014 | 2016 High | 2016 Low | |
| Cabernet Sauvignon | $2,966 | + | $2,724 | $2,605 | $17,340 | $599 |
| Pinot Noir | $3,678 | + | $3,525 | $3,245 | $13,074 | $500 |
| Merlot | $1,815 | + | $1,717 | $1,651 | $17,340 | $400 |
| Zinfandel | $2,840 | + | $2,711 | $2,541 | $6,000 | $700 |
| Syrah | $2,596 | + | $2,525 | $2,314 | $12,208 | $360 |
| Chardonnay | $2,163 | + | $2,085 | $1,986 | $12,574 | $400 |
| Sauvignon Blanc | $1,687 | + | $1,611 | $1,531 | $15,000 | $1,000 |
These figures are an important marker for both growers and wine industry professionals. Most all grape purchase agreements between growers and wineries use the weighted average price per ton as a baseline for setting the contracted price per ton.
Sonoma and Napa counties weren’t the only wine regions to see increases in price. According to a recent article from Western Farm Press wine grape prices were up throughout California. Not only did prices increase but so did production. More about Sonoma and Napa premium wine grape prices below.
Among the varieties posting increase in crush tonnage, statewide, from 2015 to 2016:
Pinot Noir – 35 percent
Pinot Grigio – 32 percent
CabernetSauvignon – 22 percent
Zinfandel – 7 percent
Chardonnay – 6 percent
Merlot – 6 percent
In other good news, let’s point towards the recent outbreak of sunshine. After many months of heavy rains California can put the “D” word away, at least for a little while. A recent article in the Los Angeles Times states that only 7% of California remains in “moderate” drought scenario and 1% in “severe” drought. This is a major improvement over just a couple years ago where these conditions covered much of the state.
In short, things are looking good in the Golden State. If you have questions please don’t hesitate to reach out. In the meantime, be sure to enjoy your favorite wine.
Cheers!
Some additional articles that might be helpful:
What is a vineyard really worth? It depends.
Wine Country Real Estate Building Blocks
Looking to Buy A Winery, Start Here
So where exactly is wine country?
Buying a Vineyard? A short course to the basics.
If you are serious about your wine country search, please contact us today. Last but least, here is link to more local resources.
It goes without saying that the vineyard, wine grape and wine industry has an impact on real estate in Napa Valley, Sonoma County and all other wine regions. Be sure to check back often to read current and past wine country real estate and wine industry news. Sourced from industry experts to keep you informed.... Read more
Based on the grape crush report it would appear Napa Valley and Sonoma County wine grape prices continue their upward climb as we enter 2024. The one exception is Sonoma County Cabernet which noted a very modest drop from the previous year.... Read more
Are you considering a move to wine country? Does the image of rolling hills, rows of vineyards in a bucolic setting come to mind? If so, purchasing a home, vineyard, or winery real estate may be your next step. Buying and selling wine country real estate isn't always black and white.... Read more
The Russian River Appellation Neighborhoods are known for growing some of the most sought after Chardonnay and Pinot Noir vineyards in the world. ... Read more
Throughout the year you can check back here to see any notable publicized vineyard and winery sales in 2024. The various sales and transactions are not only interesting but may also point to trends that can impact real estate in Napa, Sonoma and other wine country regions. This page will be updated throughout the year […]... Read more
When moving to wine country, or even after living the area for decades, there will be a time when you need some expert help and wine country resources. Here are links to various experts in Sonoma and Napa Counties. Wine Country Experts – Sonoma and Napa Architects Designers Lenders Legal Advisors Appraisers CPA / Financial […]... Read more
Overall prices remain strong as we move into the 2023 growing season. At this stage, early spring, grape buyers are trying to still discern the size of the upcoming crop.... Read more
After several years of short wine grape crops in Napa Valley and Sonoma County, wine grape prices are moving in the right direction. ... Read more
Real estate markets are local. From Healdsburg to Sebastopol in Sonoma County, and Calistoga to Yountville in Napa Valley, wine country real estate is unique. ... Read more
2020 was a strange year in deed. That said, the numbers are in as we review the final grape crush report created by the California Department of Food and Agriculture.... Read more
The new normal. I really don’t like that phrase anymore. 2020 has brought with it so many “new” normals that it is hard to keep track. ... Read more