Fresno is a rapidly growing city located right in the center of the San Joaquin Valley of California. Covering over 110 square miles, it is the largest city in the Central Valley region and is the capital of Fresno County. With a population of approximately 500,000, Fresno ranks as the fifth most populated city in California. With such a large and rapidly growing population comes a great need for housing. Due to such high demand, Fresno’s real estate economy has been booming in recent years.
As of April 2022, home prices in Fresno surged 19.5% in comparison to 2021. This has impacted the real estate economy and many houses are still selling quickly despite higher prices. The median selling price has risen to approximately $386,000 and homes around the Fresno area are still selling in as little as eight days! Because of this trend, we can confirm that Fresno remains a seller’s market. However, things seem to be slowing down in the past year; 476 homes have been sold this year, down from the 535 homes sold last year.
California real estate market predictions continue to list Fresno as one of the hottest markets in the country. According to a 2022 forecast released by the California Association of Realtors, sales slightly decreased due to higher home prices and supply constraints. However, sales will still record their second-highest rate in five years. The forecast predicts there will be a 5% decline in already built single-family homes from a predicted 439,799 units in 2021 to 416,799 units. The 2021 forecast was approximately 6.7% higher, with 411,900 homes sold in 2020.
The Fresno housing market remains very competitive, scoring an impressive 85% on Redfin’s Compete Score. Many homes for sale are receiving multiple competitive offers and some have even waived contingencies. An average home can sell for more than 2% above the listed price, but often stays pending for approximately ten days. Not only does Fresno sit in a seller’s market pattern, but it is also a very competitive marketplace due to its recent influx of Californians relocating from larger cities.
More “modern” properties are often selling at 6% above the listing price and often stay pending for about five days. Compared to nearby cities, the sale-to-list price is at 103%, translating to an uptick of 3 points year over year. The number of homes sold above the list price stands at 70%, with +64 points year over year.
To give you an insight of the current marketplace, we have included just a few of the recent homes sold:
478 W San Ramon Ave
Fresno, CA 93704
3 bedrooms, 1.5 bathrooms, 1,728 sq ft
Sold (05/18/22): $385,000 (4% over listing price)
3591 N Vernal Ave
Fresno, CA 93722
4 bedrooms, 2 bathrooms, 1,798 sq ft
Sold (05/18/22): $365,000 (7% over listing price)
1946 E Cole Ave
Fresno, CA 93720
3 bedrooms, 2 bathrooms, 1,719 sq ft
Sold (05/17/22): $465,000 (4% over listing price)
The market trends for single-family homes in Fresno currently sit at a median price list of $405,000 in April 2022, which is a drop from the 2021 average of $412,000. The median dollar per square foot is $237/sq ft, and the available number of homes for sale is 1,085 units. The median home size is 1,690 sq ft and the median days in the market stands at 7.
The market trend for condominiums in Fresno reflects a median list price of $182,000 in April 2022, up from $171,000 in 2021. The median dollar per square foot for townhomes and condos is $193, and there are currently 67 listed for sale. The median home size stands at 986 sq ft, and the median day on the market is 40 days.
The total market percentage of foreclosures and short sales properties in Fresno remained the same in May. Most statistics are calculated, tabulated, and inferred by Movoto, which harmonizes from various sources to give up-to-date information on market trends and the housing economy. Movoto also maintains and releases information on distressed properties pending foreclosure and short sales and real estate-owned properties through visual graphs and charts, providing an excellent platform of percentages to inform the public and interested candidates about foreclosure and short sale properties.
As the housing market in California continues to perform well, buyers are venturing into the market in hopes of rising mortgage rates actually being on their side. According to Zillow, Nation’s hottest housing markets remains the most robust in the country, with a brow-raising value estimated at $9 trillion as of December 2021. At approximately 21%, California is more than a fifth of the national total.
However, there has been an observed supply-demand imbalance stemming from the Fresno market variations compared to other years. Buyers are using this impasse to quote higher bids on properties and houses relative to the asking price. At 103%, the state median sale-price-to-list-price has seen an uptick, and as a result, above 70% of homes sold above the listing price, which was higher in March 2022 than in the previous nine months.
California home prices have been consistently skyrocketing due to previously low mortgage rates and tight inventory. Seller’s have been enticed to list their homes for sale, which could eventually slow down the rate of appreciation even in Fresno and surrounding cities. Statewide, only a tiny percentage of buyers, approximately 25%, could afford a purchase in the $796,000 median-priced home in 2021.
The California Association of Realtors (C.A.R.) “Housing Affordability Index” measures the percentage of buyers that can afford purchasing a single-family home in select regions and counties like Fresno. Basically, these indices measure housing affordability for homebuyers within California. According to recent statistics, to qualify to purchase a home within the median mentioned above of $797,000: homebuyers would need to be in a salary range of approximately $148,000. This calculates to an approximate mortgage payment of $3,700 (30-year mortgage, interest, property tax at a 3% interest rate). These housing prices are starting to become unattainable for many Californians.
As of May 2022, home prices have increased cumulatively in many counties across California, including Fresno, due to the demand-supply imbalance. As interest rates begin to rise, we start to see a slow in home purchases, however, many are still choosing to get into the California real estate market while they can.
Fresno has become a popular choice among Californians and those looking to relocate throughout the state. Although Fresno’s housing market continues to increase in pricing, the prices in Fresno are still much lower than that of major cities in California, such as Los Angeles, San Francisco, San Diego, San Jose and a majority of the other coastal cities.
Fresno’s Central Valley has recorded a year-over-year price uptick of 19% and a $495,000 median price. There has been a tremendous increase in demand for homes with corresponding bidding competition, leading to higher home prices. The housing market thus remains robust and thriving, and seller’s continue to have the upper hand. New construction developers are also having a hard time meeting the housing market’s demand, due to interest in the area and a shortage of building materials due to the pandemic, this is sure to be an unprecedented time in the price of Fresno’s development.
The California Association of Realtors (C.A.R.) “Consumer Housing Sentiment Index” states that about 17% of homebuyers feel it is an opportune time to buy a home and the remaining 83% feel otherwise. As many choose to hold off due to what many deem as overpriced homes, others see the opportunity to get into the Fresno market while prices are still affordable in comparison to other parts of California. Many sellers are reaping the benefits of this new market dynamic.
According to the C.A.R. survey, 75% of California residents feel it is an excellent time to sell a home which has increased by 3% from earlier in the year. About 64% of consumers believe home prices will continue to rise for the next year, a 1% increase from April 2022. In polls published from surveys by C.A.R, the trend is encouraging as the new listing continues to rise, and recent forecasts state that there will be a 9% growth in home and property sales for the remainder of the year.
Buyer demand remains vigorous despite being slightly lower than in 2021. Mortgage rates are starting to increase as the Federal Reserve remains aggressive in combating inflation by raising interest rates. In April, the fixed average mortgage rate rose from 4.67% to 4.72%, and this was the highest it has been since December 2018. Mortgage rates are expected to continue to rise throughout the remainder of 2022.
According to the California Association of REaltors (C.A.R.)., many prospective sellers are set to list their homes for sale, offsetting the demand-supply imbalance despite the high mortgage rates and intervention from the federal government. Home prices are expected to scale up at a relatively slower pace than early in the year, however, prices are still higher than average.
As Fresno continues to grow and get on the radar of Californians relocating from larger cities, it is not uncommon to receive an offer on a house in Fresno the day of, or even before listing. Many buyers are coming in with cash offers and are willing to pay the price a seller is asking. In as little as a few days, you could have your home sold in Fresno, CA.
Judging from the information listed above and associated statistics, it’s safe to say it is still a seller’s market in Fresno, California. We recommend contacting our trusted agents at The Dehlan Group if you are looking to sell your home in Fresno, CA. We can make sure you get the best price for your home and the most stress-free experience possible.
There has never been a better time to sell your home in Fresno, CA and we would love the opportunity to help you with the process.