Everyone dreams of owning a beautiful home or property at some point in their life. Recently, many homeowners are making their dreams a reality in Fresno, California. As a growing competitive player in the California real estate market, the “Central Valley” has become one of the hottest housing markets in the United States. In October 2021, the median price of a house in Fresno increased by 13.1%, in comparison to the previous year. In addition, the average number of days to sell a home in Fresno reduced to just 9 days. The increasing demand for homes in Fresno is impacting pricing and real estate experts project that these trends are not slowing down and prices will continue to follow.
Drastic price increases in California’s major cities, such as Los Angeles, San Jose, and San Francisco, are major contributors to Fresno’s real estate boom. With people fleeing the high cost of major cities, coupled with the growth of remote work possibilities, Fresno is rapidly becoming one of the hottest housing markets to watch out for in 2022.
Fresno real estate investment overview
As the 5th largest city in California, Fresno has the reputation of a large, yet simple city with affordable housing in comparison to other cities in the state. Since 2017 rent prices alone have gone up by 39% due to increase in population and high demand, inspiring many locals to purchase homes themselves. While the Fresno city continues to grow, the crime rates in Fresno are still a bit lower than in other major cities in California, making it a relatively safe place to live and raise a family.
As a fast-developing metropolitan city with a population of approximately 550,000, the economy of Fresno is rapidly improving. Various companies have started to set up locations and headquarters in Fresno, bringing new industries and job opportunities to the city. And, as the City of Fresno continues to invest in itself and its infrastructure, many Californians are taking notice and relocating to Fresno. All of these factors are contributing to a rapidly growing real estate market in Fresno, California.
Fresno housing market trends
Fresno’s real estate market is extremely competitive compared to other counties in California. As previously mentioned, housing prices rose by 13.1% in 2021 compared to the previous year. According to Redfin, the median price for a home in Fresno in February 2022 sat around $360,000. You can still get your hands on a fairly nice property in Fresno in comparison to many other major cities in California.
Fresno is centrally located in the heart of California’s agricultural region, where many have traditionally come to settle down in secure jobs, raise families, and live a modest lifestyle. Although Fresno was once known as one of the most affordable places to buy a home in California, things have started to change. Rent and home prices have risen dramatically since the beginning of the pandemic, recording a 26% increase in just 12 months. However, renting or buying a home in Fresno is still significantly cheaper than in Los Angeles or San Francisco.
For these reasons, the Fresno housing market is promising for anyone looking to purchase real estate. However, if you are in the market to buy, it’s advisable to do so soon as the prices in Fresno have been steadily rising since 2020. Fresno housing market forecast consistently indicates that home prices will continue to increase in 2022. The rise of Fresno home values for the last two consecutive years is a clear indicator of the house market’s direction: The future of real estate is bright in Fresno.
How hot is the Fresno housing market?
Many people agree that investing in real estate is one of the best investments you will ever make. But you may ask, is buying a home in Fresno a good investment? In past decades, many investors set their sights on California’s major cities and coastal regions, such as Los Angeles and San Francisco. However, Fresno is slowly becoming one of California’s hottest real estate markets and has many investors changing their minds. In September 2021, the LA Times released an article titled: “Gimme Shelter: Why Fresno is one of the nation’s hottest housing markets.”
The market trends for the last three years confirms that Fresno is an excellent place to buy property. Fresno housing prices have gone up by 22.7% in the last year and are projected to rise by 16.1% in the next year. Those are amazing returns!
Fresno market is big enough to consider
As a buyer or investor in the real estate industry, it’s helpful to know the size of the market you’re investing in. In comparison to California standards, Fresno’s housing market often appears quite small, but when taking a deeper look (especially with the help of a skilled local agent), it is a vast and promising opportunity. The City of Fresno has a population of approximately 550,000 and roughly over a million residents if you factor in the suburbs. Fresno is also the 5th largest city in California and one of the fastest-growing urban centers in the region.
Fresno’s living standards are relatively modest for California, one of the reasons so many people are relocating to the Fresno city. Due to this influx of residents from more expensive cities in California, the demand for housing and entertainment in Fresno has been on the rise. The population in the Fresno city and its suburbs are expected to continue growing, ultimately putting more pressure on the housing market.
Is Fresno real estate affordable for investors?
California is one of the most expensive states in the United States. With the median price for a house in Fresno currently around $360,000, it is higher than the average American typical home value. However, when compared to other cities in California, Fresno is still quite affordable. On the other hand, a home anywhere near Los Angeles or San Francisco could easily start at more than a million dollars, making both cities quite unaffordable in recent years.
For anyone looking to invest in California’s real estate market, Fresno remains a great option compared to many other cities. If you are looking at return on investment, Fresno is one of the fastest-growing cities in the United States, and according to the housing market projections, the market continues to look promising.
If you have your sights set on California, Fresno is a great place to settle down or turn massive profits on real estate. We do not anticipate housing prices in Fresno going down anytime soon, making Fresno a sound investment!
Get in touch with The Dehlan Group today, we can help you find the perfect property.