The housing market in Fresno and the Central Valley region of California has been a topic of interest for buyers, sellers, and real estate agents. Understanding the latest trends and changes in the market can provide valuable insights for those involved in the real estate industry. In this article, we will delve deeper into the current state of the housing market in Fresno and the Central Valley region and explore the factors driving these changes. The valley encompasses all or parts of 19 California counties including Fresno.
Central Valley Housing Market Trends
This analysis sheds light on the median sold prices of existing single-family homes and sales metrics, providing a deep understanding of the region's real estate dynamics. According to the California Association of Realtors (CAR) report, the median sold price for existing single-family homes in the Central Valley is a pivotal indicator of the market's health and trajectory.
The data reveals that as of June 2023, the median sold price stands at $480,000. This figure marks a slight decline from the previous month's median sold price of $485,000, indicating a 1.0% month-to-month change. Furthermore, in comparison to the median sold price of $500,000 recorded in June 2022, there has been a 4.0% year-over-year decrease.
The report continues to unveil crucial sales metrics that provide insight into Central Valley's housing market vitality. For June 2023, the report highlights a 2.4% decrease in sales activity compared to the previous month. Notably, when juxtaposed with June 2022's sales figure the report underscores a substantial year-over-year decrease of 22.9%.
Fresno Housing Market Trends
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 is currently in a buyer's market. The median home price in Fresno is $375,000, which is down 2.6% from last year. Homes are staying on the market for an average of 12 days, which is up from 9 days last year. There were 357 homes sold in June 2023, down from 472 last year.
House Prices and Sales Trends
According to data by Redfin, in June 2023, the median sale price of a home in Fresno stood at $375,000. This figure reflects a 2.6% decrease compared to the previous year's prices. This dip in prices might be a result of various factors, such as changes in demand, economic conditions, and the overall real estate landscape. It's important to note that these fluctuations are common in the housing market and can be influenced by both local and global events.
Competitive Nature of the Market
Fresno's housing market is undoubtedly competitive, with homes typically receiving multiple offers. The Redfin Compete Score™, which rates competitiveness on a scale of 0 to 100, is an impressive indicator of the market's vigor. This score, calculated over the last three months, emphasizes Fresno's competitiveness, with many homes receiving multiple offers, some with waived contingencies. On average, homes go pending in around 12 days, which showcases the urgency and demand within the market.
As of August 2023, the average rent for a 1-bedroom apartment in Fresno, CA is currently $1,315. This is a 15% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Fresno decreased by -7% to $995. The average rent for a 1-bedroom apartment increased by 1% to $1,315, and the average rent for a 2-bedroom apartment increased by 6% to $1,600.
- The average rent for a 2-bedroom apartment in Fresno, CA is currently $1,600, down 9% compared to the previous year.
- The average rent for a 3-bedroom apartment in Fresno, CA is currently $2,195, up 5% compared to the previous year.
- The average rent for a 4-bedroom apartment in Fresno, CA is currently $2,595, down 2% compared to the previous year.
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.
Overall, the Fresno housing market is a good option for buyers who are looking for an affordable home in a warm and dry climate. However, it is important to do your research and understand the market conditions before making an offer.
Fresno Housing Market Forecast 2023-2024
The Fresno housing market has seen its fair share of fluctuations, and as we move forward, it's essential to examine the data and trends to predict what lies ahead. Zillow's insights provide valuable information about the current state of the market, offering a snapshot of where things stand as of June 30, 2023.
Current Market Snapshot:
According to Zillow, the average home value in Fresno is $363,533, which has experienced a slight decline of 1.6% over the past year. Homes are spending approximately 7 days on the market before going pending, reflecting high demand and a rapid pace of transactions. It's noteworthy that while the overall market has experienced a minor dip in value, the median sale-to-list ratio remains at a healthy 1.000, indicating that homes are still being sold close to their listed prices.
The Fresno housing market is showing interesting dynamics in terms of sale prices. As of May 31, 2023, 43.8% of sales are occurring over the list price, demonstrating a competitive atmosphere where buyers are willing to pay more to secure their desired properties. On the other hand, 37.4% of sales are occurring under the list price, suggesting that there are still opportunities for those looking for deals.
Metropolitan Fresno, officially Fresno–Madera, CA CSA, is a metropolitan area in the San Joaquin Valley, in the United States, consisting of Fresno and Madera counties. It is the third-largest metropolitan region in Northern California, behind the San Francisco Bay Area and Greater Sacramento.
Looking into the near future, the Fresno Metropolitan Statistical Area (MSA) housing market is anticipated to experience gradual growth. According to the provided forecast data, from July 31, 2023, to September 30, 2023, a modest increase of 1.3% in home values is projected. This signifies a positive trend that could indicate a stabilizing market and growing buyer confidence.
Zooming out to a longer horizon, the data suggests that the Fresno MSA housing market could see more significant growth. By June 30, 2024, the forecast indicates a potential increase of 5.4% in home values compared to the base date of June 30, 2023. If this prediction holds true, it could indicate a shift towards a more robust and competitive housing market, potentially offering new opportunities for both buyers and sellers.
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.
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.
Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and taking the help of a real estate investment counselor.
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.
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 are 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 long 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 homeowners.
Let us know which real estate markets you consider best for real estate investing!
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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.