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July 24th, 2019 by Marco Santarelli
How is The Fresno Real Estate Market 2019?
Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Fresno real estate market as a potential investment opportunity, you must read till the end. Fresno is among nation’s top housing markets to watch in 2019.
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.
Fresno 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.
If you are an investor, Fresno has a record of being one of the best long term real estate investments in the nation. In the last twelve months, short-term real estate investors have found good returns in Fresno. There are a number of reasons to consider investing in the Fresno real estate.
Is Fresno going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Fresno housing market trends and find out the prospects of investing in the Fresno real estate in 2019.
Fresno Real Estate Market Forecasts 2019 & 2020
The median home value in Fresno is $243,200 on Zillow. Fresno home values have gone up 5.8% over the past year and Zillow’s Fresno real estate market prediction is that the prices will rise 2.5% by June 2020. The median list price per square foot in Fresno is $165, which is lower than the Fresno Metro average of $170.
The median price of homes currently listed in Fresno is $286,000 while the median price of homes that sold is $242,500. The median rent price in Fresno is $1,400, which is lower than the Fresno Metro median of $1,495.
Here is the Fresno real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.5% till May 2020.
Fresno Housing Market Forecast 2019 – 2021
The Fresno housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Fresno housing market trend prediction is 69%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Fresno, CA is 69% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Fresno, California Real Estate Forecast.
Fresno real estate market Trends
According to Trulia’s assessment the Fresno County will be a strong up-and-comer in the real estate market in 2019. Fresno real estate market trends indicate an increase of $3,500 (1%) in median home sales and a 3% rise in median rent per month over the past year. The average price per square foot for this same period rose to $163, up from $156. Trulia has 1,372 resale and new homes for sale in Fresno, CA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Fresno for Apr 11 to Jul 10 was $258,500 based on 1,362 home sales. Average price per square foot for Fresno was $163, an increase of 4% compared to the same period last year. The median rent per month for apartments in Fresno for Jun 16 to Jul 16 was $1,550.
As per the real estate company named Redfin, the Fresno housing market is very competitive. Homes in Fresno receive 2 offers on average and sell in around 20 days. The average sale price of a home in Fresno was $265K last month, up 2.1% since last year.
The average sale price per square foot in Fresno is $165, up 5.4% since last year. Homes typically receive 2 offers. Homes in the Fresno housing market sell for around list price and go pending in around 20 days. Hot homes for sale in Fresno, CA can sell for around list price and go pending in around 7 days.
Fresno Housing Market Statistics
There are 1,573 homes for sale in Fresno, CA ranging from $5K to $13.9M on Realtor.com. 182 of which were newly listed within the last week. Additionally, there are 219 Fresno rental properties up to $3.3K per month. In June 2019 the housing market in Fresno, CA was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In June 2019, the median list price of homes in Fresno, CA was $279,000, trending up 3.4% year-over-year. The median listing price per square foot was $165. The median sale price was $265,000. On average, homes in Fresno, CA sell after 54 days on the market. The trend for median days on market in Fresno, CA is flat since last month, and slightly up since last year.
The median list price in Fresno, CA is $321,042 on Movoto.com. The median list price in Fresno went down 1% from June to July. Fresno’s home resale inventories is 848, which decreased 1 percent since June 2019. The median list price per square foot in Fresno is $169. June 2019 was $168. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.
Fresno, CA Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Fresno, CA is $230,309, which indicates that home prices in Fresno are a little above the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Fresno, accounting for 60.60% of the city’s housing units.
Other types of housing that are prevalent in Fresno include large apartment complexes or high rise apartments ( 20.50%), duplexes, homes converted to apartments or other small apartment buildings ( 14.14%), and a few row houses and other attached homes ( 2.53%).
The most prevalent building size and type in Fresno are three and four bedroom dwellings, chiefly found in single family detached homes. The city has a mixture of owners and renters, with 46.04% owning and 53.96% renting.
Currently, there are 1,035 single family homes for sale in Fresno, CA on Zillow. Additionally, there are 183 single family homes for rent in Fresno, CA. Under potential listings, there are about 21 Foreclosed and 306 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Fresno, CA Foreclosures And Bank Owned Homes 2019
According to Zillow, a website for people looking to buy and rent homes, in Fresno 0.5 homes are foreclosed (per 10,000). This is the same as the Fresno Metro value of 0.5 and also lower than the national value of 1.2. The percent of delinquent mortgages in Fresno is 1.1%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Fresno homeowners underwater on their mortgage is 9.3%, which is higher than Fresno Metro at 8.7%.
There are currently 412 properties in Fresno, CA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 564. In June 2019, the number of properties that received a foreclosure filing in Fresno, CA was 45% higher than the previous month and 24% lower than the same time last year.
Home sales for May 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Fresno was $0. The median sales price of a foreclosure home in Fresno was $0, or 0% higher than non-distressed home sales.
Fresno Home Prices And Real Estate Appreciation 2019
Fresno real estate appreciated 38.82% over the last ten years, which is an average annual home appreciation rate of 3.33%, putting Fresno in the top 20% nationally for real estate appreciation.
Fresno real estate appreciation rates are so strong that despite a nationwide downturn in the housing market, Fresno real estate has continued to appreciate in value faster than most communities.
In the latest twelve months, Fresno real estate appreciation rates continue to be some of the highest in the nation, at 9.66%, which is higher than appreciation rates in 90.15% of the cities and towns in the nation.
The above statistics on real estate appreciation in Fresno, CA were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to California, their data shows that Fresno’s latest annual appreciation rate is higher than 90% of the other cities and towns in California.
The future of the Fresno real estate market looks bright. The economy and unemployment rates are still an area of concern, but things are improving. Back to back years of rising home values and sales prices should only be the start of where the market is headed for.
Best Places To Buy Real Estate In Fresno, CA
If you are looking to buy real estate in Fresno, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Fresno real estate and you should be able flip it for a lump sum profit.
When looking to invest in Fresno real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Fresno investment property should be low. The neighborhoods in Fresno must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. In Fresno, there are 138 elementary schools, 62 middle schools, 49 high schools and 42 private & charter schools.
There are 22 neighborhoods in Fresno. Some of the best neighborhoods in Fresno, California are Sunnyside, Fig Garden Loop and Tower District.
Southeast Growth Area has a median listing price of $632.5K, making it the most expensive neighborhood. Huntington is the most affordable neighborhood in Fresno, with a median listing price of $179.9K. There are 291 schools in Fresno, CA.
Here are the 10 best neighborhoods in Fresno to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Fresno Real Estate In 2019?
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 good investment? 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 2019 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 but we have collected ten evidence based positive things for those who are keen to invest in the Fresno real estate in 2019.
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.
1. 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.
2. The Fresno Area Is Rapidly Growing
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 growing 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.
3. Fresno Real Estate is Affordable for Investors
Affordability is relative. The average home in Fresno costs around 260,000 dollars. That’s roughly 30,000 more than the average American home. Yet the Fresno housing market is a bargain by California’s standards.
After all, you’d pay more than a million for a three bedroom ranch home anywhere near San Francisco, and LA is hard to afford unless you put half a million into a property purchase.
4. 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 for 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 the 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.
5. The Sizable Student Market
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.
6. Local Economics Create a Large Pool of Renters
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 slower local economy has 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.
7. The Abundant Opportunities for Real Estate Deals
If you’re looking for a Fresno real estate investment property, you’ll make the most money when you can buy low and sell high or buy cheap, fix up and rent out at market rates. The Fresno real estate market is notable for the high rate of foreclosures.
In Fresno County, 1 out of 1600 homes is in foreclosure. However, towns on the edges of the Fresno housing market have far higher foreclosure rates. The foreclosure rate is roughly 1 out of every 300 homes in Dunlap and Cantua Creek.
In Coalingua, Del Ray and Friant, it is roughly one out of every 700 homes. The number of distressed sellers not yet in bankruptcy and foreclosure is even higher.
8. 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.
9. The Strong ROI
The median rent in the Fresno area is 1600 dollars a month, though you can rent a single family home in the Fresno area for much more than this. A side benefit of the relatively affordable real estate market is that you’ll pay less in real estate taxes than you would a “hotter” market.
That’s why the theoretically lower property tax rate in LA doesn’t matter, since the average home costs twice as much as one in the Fresno real estate market.
10. 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 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 Real Estate Investment
Maybe you have done a bit of real estate investing in Fresno, CA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Fresno real estate investment opportunity would be a key to your success. in If you invest wisely in Fresno real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Fresno investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Fresno, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Fresno, CA. 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.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Fresno real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Madison, WI. The Madison, Wisconsin area sits in a sweet spot. It is larger than a small town and has the amenities of a big city, but it lacks the problems of some of the larger cities in the region.
It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.
The demand for Madison real estate investment properties by renters is higher than you’d expect for several reasons. One is that the Madison real estate market costs more than the state average due to demand.
The second is that the large population of student renters in the Madison real estate market drives up rents, forcing many renters to save up longer before they can buy a home.
There are also Millennials who work here after graduation but are reluctant to commit to buying a house, so they continue to rent. This is why less than 60 percent of Madison residents are home owners.
Another sizzling market to invest in real estate is Tulsa, Oklahoma. The Tulsa real estate market offers affordable properties, decent rental rates, strong property rights, low taxes and a number of other benefits. You can’t afford to ignore this real estate market when searching for investment opportunities.
It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.
There are several opportunities to profit from short term rentals with a Tulsa real estate investment property. One is offering short term rentals to people relocating to the area or in the area for events like college graduations.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Affordable for investors
Large pool of renters
Landlord friendly https://reason.com/video/san-francisco-mission-housing-crisis
Quality of life
Housing Market Data, Trends & Statistics
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