Currently, the Fresno housing market tilts towards sellers, given the limited inventory and high demand driving prices upward. However, this doesn't imply that buyers are at a disadvantage. With strategic planning and the guidance of a knowledgeable real estate agent, buyers can still find opportunities to secure desirable properties in Fresno's vibrant market.
Fresno Housing Market Trends in 2024
Fresno is the fifth-most populous city in California and the county seat of Fresno County. The city is located in the San Joaquin Valley, about 200 miles southeast of San Francisco. Fresno is known for its agriculture, hot weather, and diverse population.
The Fresno housing market continues to show resilience and growth, with notable increases in home prices and sales activity. According to Redfin, in February 2024, the median home price in Fresno surged by 7.8% compared to the previous year, reaching a median price of $385,000. This upward trend is indicative of the city's robust real estate landscape.
How is the Fresno Housing Market Doing Currently?
The current state of the Fresno housing market is marked by strong demand and limited inventory, driving prices upward and reducing the time homes spend on the market. Homes in Fresno are selling 24 days faster on average compared to last year, with an average of 26 days on the market. Additionally, the sale-to-list price ratio has increased by 0.2 percentage points year-over-year, indicating a high level of competitiveness.
Competitive Dynamics: Fresno's housing market is fiercely competitive, with many homes receiving multiple offers and some even waving contingencies. The average home sells for approximately 1% below the list price, while hot properties can sell for about 2% above list price, further underscoring the market's competitiveness.
Are There Enough Homes for Sale to Meet Buyer Demand?
Despite the robust demand, the inventory of homes for sale in Fresno remains limited, posing a challenge for prospective buyers. This scarcity of available homes contributes to the fast-paced sales environment, where properties go pending in as little as 24 days. While this may present challenges for buyers, it also creates opportunities for sellers to capitalize on the seller's market conditions.
What is the Future Market Outlook for Fresno?
The future outlook for the Fresno housing market remains optimistic, with sustained demand expected to drive continued growth. While factors such as economic conditions and interest rates may influence market dynamics, the fundamental strength of Fresno's real estate market positions it for long-term stability and growth.
Understanding migration and relocation trends provides valuable insights into the dynamics of the Fresno housing market. In the first quarter of 2024, 41% of homebuyers in Fresno searched to move out of the area, while 59% looked to stay within the metropolitan region.
Inbound Migration: Across the nation, 0.48% of homebuyers expressed interest in relocating to Fresno from outside metropolitan areas. Notably, homebuyers from San Francisco, Los Angeles, and Visalia showed the highest interest in moving to Fresno, highlighting the city's appeal as a desirable destination.
Thus, the Fresno housing market continues to exhibit strength and resilience, driven by strong demand and limited inventory. While challenges exist, opportunities abound for both buyers and sellers in this dynamic real estate landscape.
For Home Buyers in Fresno
If you are looking to buy a home in Fresno, now is a good time to do it. Home prices are still relatively affordable, and there are plenty of homes to choose from. However, it is important to act quickly, as the market is expected to continue to soften in the coming months.
Here are some additional things to keep in mind when considering the Fresno housing market:
- The cost of living in Fresno is slightly below the national average.
- The weather in Fresno is hot and dry in the summer, but mild in the winter.
- Fresno is a major agricultural center, so there is a lot of farm work available.
- The school district in Fresno is ranked below average.
Fresno Housing Market Forecast for 2024 and 2025
According to Zillow, the Fresno housing market is showing resilience and promise, with the average home value standing at $370,798, marking a 4.4% increase over the past year. Homes in Fresno are swiftly moving, typically going to pending status in around 17 days. To comprehensively grasp the state of the market, it's imperative to delve into various metrics that delineate its current standing.
756 homes were listed for sale as of February 29, 2024, while the same period witnessed 281 new listings. The median sale to list ratio as of January 31, 2024, stood at 1.000, indicative of a balanced market where homes typically sell for their listed price. Further breaking down the figures, the median sale price recorded on January 31, 2024, was $351,667, slightly lower than the median list price of $399,667 noted on February 29, 2024. Additionally, the market witnessed 40.3% of sales over list price and 41.4% of sales under list price as of January 31, 2024.
Forecasting Fresno's Housing Market
The Fresno Metropolitan Statistical Area (MSA) encompasses Fresno County in California. With a diverse array of neighborhoods and communities, Fresno's housing market exhibits a robust and expansive nature. As of February 29, 2024, the MSA housing market is projected to experience a 0.5% increase by March 31, 2024, followed by a 1.2% rise by May 31, 2024, and maintaining this growth trajectory with another 1.2% increase by February 28, 2025.
The Fresno MSA encompasses Fresno County, a sprawling region in the heart of California. Its housing market is sizable and diverse, catering to a range of buyers and sellers. With a mix of urban and suburban areas, Fresno County offers a myriad of housing options, from single-family homes to condominiums and apartments. The economic vibrancy of the region underpins its housing market, attracting both local residents and newcomers seeking to establish roots in this vibrant community.
Are Home Prices Dropping in Fresno?
Despite fluctuations in the market, data suggests that home prices in Fresno have been steadily increasing over the past year. With an average home value of $370,798 and a 4.4% increase recorded over the previous year, the trend indicates a stable and appreciating market. While short-term fluctuations may occur, the overall trajectory points towards sustained growth in home prices.
Will the Fresno Housing Market Crash?
Speculating on whether Fresno's housing market is susceptible to a crash entails a nuanced analysis of various economic indicators and market dynamics. While past performance can offer insights, predicting future trends with certainty is challenging. Currently, Fresno's housing market appears resilient and stable, with moderate yet consistent growth in home values. However, factors such as economic downturns, changes in interest rates, or unforeseen events could potentially impact the market. Thus, while there are no indications of an imminent crash, vigilance and monitoring of market conditions remain prudent.
Is Now a Good Time to Buy a House in Fresno?
Determining whether it's an opportune moment to purchase a home in Fresno depends on individual circumstances and goals. With a balanced market offering opportunities for negotiation and moderate but consistent growth in home values, Fresno presents a favorable environment for prospective buyers. Additionally, low interest rates as compared to last year enhance affordability, making homeownership more accessible. However, it's essential for buyers to conduct thorough research, assess their financial readiness, and consult with real estate professionals to make informed decisions tailored to their specific needs and aspirations.
Fresno Real Estate Investment Overview
Is it worth buying a house in Fresno, CA? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Fresno is a good investment? Fresno is the epitome of “the Valley”, the city that Californians like to mock as a backwater drawing a steady stream of nearly local rural girls to the theoretically more cultured, exciting, and fun cities like Los Angeles. Fresno continues to be ignored in favor of hot coastal markets like San Francisco and Los Angeles.
It is located in the San Joaquin Valley, the agricultural heart of the state. It sits at the southern end of the valley. It is sometimes called the heart of the Inland Empire. You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Fresno housing market forecast for answers on why to put resources into this market. Although this article alone is not a comprehensive source to make a final investment decision for Fresno we have collected ten evidence-based positive things for those who are keen to invest in Fresno real estate
Investing in Fresno real estate will fetch you good returns in the long term as the home prices in Fresno have been trending up year over year. Let’s take a look at the number of positive things going on in the Fresno real estate market which can help investors who are keen to buy an investment property in this city.
Fresno Market is Big Enough to Consider
The Fresno housing market is small by Californian standards, but it is a large real estate market in and of itself. Fresno is home to over half a million people, making it the fifth-largest city in the state and coming as the thirty-fourth-largest city in the United States. However, the Fresno real estate market is larger than this. When you take the suburbs into account, the Fresno real estate market contains almost a million people.
While you may hear about all the people fleeing California for states like Colorado and Idaho for a lower cost of living, it is cities like Fresno that see growth by people who need to move for the same reasons but don’t want to leave the state. This is why Fresno has grown five percent since 2010. The Fresno suburb of Clovis is one of the fastest-growing cities in the U.S. Clovis grew roughly ten percent since 2010. This population growth will continue to fuel property appreciation in the Fresno real estate market.
Fresno Real Estate is Affordable for Investors
The Fresno housing market offers some affordability for real estate investors, especially when compared to more expensive markets in California. The average home value of $363,533, as of June 30, 2023, is notably lower than many other cities in the state, making Fresno a potentially attractive option for investors looking to enter the California real estate market.
The relatively lower average home value means that investors might need less initial capital to enter the market compared to investing in higher-priced regions. Fresno's affordability could make it an attractive destination for renters, potentially providing opportunities for investors interested in rental properties. Strong demand for rental properties can create a steady income stream for investors.
Fresno Has a Relatively Diverse Economy
Fresno may be in the agricultural heartland of the state, but there is more to the local economy than farming and food processing. The city is the regional services hub, resulting in many educational and medical jobs. The IRS has a regional office located here, as well. There are also several colleges in the area, but that will be addressed later in the article. While Fresno made the news of the real estate crash around 2008, the diverse and improving job market contributed to the rebounding of the Fresno housing market.
And if they ever finish that bullet train to connect Fresno to San Francisco, expect the Fresno housing market to boom as people move somewhere they can buy a house for less than 300K while earning 100K or more in Big Tech. The multiple military bases in the area provide high-tech jobs instead.
The Sizable Student Market That Rents
California State University has a campus here. Commonly called Fresno State, it is home to more than twenty thousand students. This creates a disproportionately large student population in the Fresno housing market. However, that’s not the only college in the area. Fresno Pacific University is a private four-year school, and it has more than four thousand students. Reedly College in Reedly, California is in the suburbs of Fresno. All of this gives those considering Fresno real estate investment the opportunity to have a diverse property portfolio without tying their fates to the state of one massive school.
There are several reasons why there is an unusually large pool of renters competing to stay in your Fresno real estate investment property. The seasonal nature of the agricultural industry and the slower local economy have resulted in a 7 percent unemployment rate, several points higher than the state and national average. People who have cycled in and out of the workforce aren’t going to be able to buy a home. Those working in low-paying industries can’t afford the average home, either.
The Relative Landlord-Friendliness
California is definitely tenant-friendly, but cities can be more or less in favor of property owners. We can say that the Fresno real estate market is more friendly to landlords than somewhere like San Francisco. For example, your Fresno real estate investment property isn’t subject to rent control unless you’re running a trailer park. Nor does Fresno follow in San Fran’s habit of nearly banning new construction. It is also much easier to evict someone in Fresno who doesn’t follow the terms of the lease. Furthermore, Fresno allows you to remove tenants through no fault of their own.
The Quality of Life
Quality of life generally isn’t enough to make someone pick up and move to a new city. However, plenty of people are fleeing cities like San Francisco and L.A. because of the poor quality of life there. Why would you want to pay 3000 to 4000 a month to live in a tiny room and try to avoid poop and needles on the street just to say you work for Big Tech or, hey, aren’t I cool for living in San Francisco? Fresno’s violent crime rate is much lower than L.A.’s, too. Combine a lower cost of living with reasonable wages, cleaner air, and literally clean streets, and the slightly higher odds of having your car broken into are considered worth it.
Fresno is sometimes seen as the boring middle child in a famous family. It is overshadowed by Los Angeles, San Francisco, and San Jose. Yet it is free of their many problems, too, while remaining solid and stable. That’s why you can’t afford to ignore the Fresno area.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Fresno, CA is your ability to find great real estate investments in that area.
References
- https://www.car.org/marketdata/data/countysalesactivity
- https://www.zillow.com/fresno-ca/home-values
- https://www.redfin.com/city/6904/CA/Fresno/housing-market
- https://www.realtor.com/realestateandhomes-search/Fresno_CA/overview
- https://www.neighborhoodscout.com/ca/fresno/real-estate
- https://www.zumper.com/rent-research/fresno-ca
- https://www.collegesimply.com/colleges-near/california/fresno
- https://www.fresnobee.com/news/local/article144649154.html