Fresno is among the nation’s top housing markets to watch in 2021. In fact, the Central Valley of California has become one of the nation’s hottest housing markets this year. The median price of an existing house in October was $450,000, up 13.9% from last year. The median number of days it took to sell a home in Central Valley was just 9 days. As inventory is declining, there is more pressure for home prices to increase in the next year. Months supply of inventory is 1.8, which means it would take 54 days for the current inventory of homes on the market to sell given the current sales pace.
The valley encompasses all or parts of 19 California counties including Fresno. The Fresno housing market is as hot as Central Valley. The median price of an existing home in Fresno is $385,000, which is an increase of 16.1% over last October’s median price. The median days to sell a home is just 7. Fresno County consists of 53 cities. In October 2021, the median listing price of a home in Fresno County, California was $365K, an increase of 14.1% year over year (source: Realtor.com).
The median listing price per square foot for single-family homes was $219.
The median price of a home sold was $365K.
Homes in Fresno County, CA sold for approximately the asking price on average in October.
The trend for median days on market in Fresno County, CA has gone down since last month, and slightly down since last year.
Laton has a median listing home price of $700K, making it the most expensive city.
Huron is the most affordable city, with a median listing home price of $215K.
The median listing home price in Fresno City is $348.9K, trending up 16.3% year-over-year.
Fresno Housing Market Trends 2021
As per the real estate company named Redfin, the Fresno housing market is very competitive. In October 2021, Fresno home prices were up 13.1% compared to last year, selling for a median price of $362K. On average, homes in Fresno sell after 11 days on the market compared to 9 days last year. There were 525 homes sold in October this year, down from 528 last year.
Many homes get multiple offers, some with waived contingencies.
The average homes sell for around list price and go pending in around 10 days.
Hot homes can sell for around the list price and go pending in around 5 days.
According to the California Association of Realtors;
Existing SFR Home Sales in October were 988, down 2.1% year-over-year.
The year-to-date sales are still up 8.1% from last year.
The Existing SFR Median Price was $385K, up 16.7% year-over-year.
Total Active Listings in the month were 1,151, +5.7% change from last year.
Median Dayson Market was 8.
The Sale-to-List Price ratio was 100.9%.
% of Active Listings with Reduced Prices was 24.2%.
The unsold inventory equals 1.9 months, up 5.6%.
Fresno is the county seat of California’s agricultural Central Valley and has historically been one of the most affordable cities in the state. However, rents began to rise dramatically during the pandemic, increasing by 26 percent in just 12 months. Rents in Fresno remain lower than those in San Francisco or Los Angeles, at $1,141 for a one-bedroom and $1,421 for a two-bedroom.
As of November 27, 2021, the average rent for a 1-bedroom apartment in Fresno, CA is currently $1,458. This is a 30% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Fresno increased by 1% to $950. The average rent for a 1-bedroom apartment increased by 8% to $1,458, and the average rent for a 2-bedroom apartment increased by 1% to $1,731.
The average rent for a 2-bedroom apartment in Fresno, CA is currently $1,731, up 28% compared to the previous year.
The average rent for a 3-bedroom apartment in Fresno, CA is currently $1,942, up 22% compared to the previous year.
The average rent for a 4-bedroom apartment in Fresno, CA is currently $2,400, up 32% compared to the previous year.
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 in 2022.
Source: CAR.org
Fresno Real Estate Market Forecast 2021-2022
According to NeighborhoodScout, Fresno real estate has appreciated by 126.79 percent over the last ten years, an average annual rate of 8.53 percent, placing Fresno in the top ten percent of all cities for real estate appreciation. Hence, if you are a home buyer or real estate investor, Fresno has unquestionably established itself as one of the best long-term real estate investments over the last decade.
In the last twelve months, Fresno’s appreciation rates have remained among the highest in the country, at 12.83 percent, which is higher than the appreciation rates in 88.37 percent of the nation’s cities and towns. Short-term real estate investors have found success in Fresno over the last twelve months. Fresno appreciation rates were 4.05 percent in the most recent quarter, equating to a 17.21 percent annual appreciation rate.
The typical home value in Fresno County is $358,255 on Zillow. Fresno home values have gone up 22.7% over the past year will continue to rise over the next twelve months. 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.
The typical home value of homes in Fresno Metro is $358,255.
Fresno Metro home values have gone up 22.7% over the past year and Zillow predicts they will rise 16.1% in the next year.
The typical home value of homes in Fresno City is $343,982, up 23.0% over the past year.
Madera County’s home values have gone up 20.6% (current = $370,454) over the past year and will continue to rise in the next year.
San Joaquin County home values have gone up 30.0% over the past year and will continue to rise in the next year.
Here is the Fresno real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast until Oct 2022.
Graph Credits: Zillow.com
Fresno Real Estate Investment Overview 2022
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
Affordability is relative. The median home price in Fresno County is around 385,000 dollars. That’s a lot more than the average American home value. 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.
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.
References
Housing Market Data, Trends & Statistics
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
Diverse economy
https://en.wikipedia.org/wiki/Fresno,_California
https://realestate.usnews.com/places/california/fresno/jobs
https://en.wikipedia.org/wiki/Fresno,_California#Military_units
Student market
https://en.wikipedia.org/wiki/California_State_University,_Fresno
https://www.collegesimply.com/colleges-near/california/fresno
Affordable for investors
https://realestate.usnews.com/places/california/fresno
Large pool of renters
https://realestate.usnews.com/places/california/fresno/jobs
Rapid growth
https://www.fresnobee.com/news/local/article144649154.html
Quality of life
https://www.foxnews.com/us/san-francisco-map-shows-human-poop-complaints
https://www.bestplaces.net/compare-cities/los_angeles_ca/fresno_ca/crime
https://www.movoto.com/blog/homeownership/is-fresno-a-good-place-to-live
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