The residential market in Fresno County remained stable during the start of Covid-19 and has recently seen a spike in pending sales. With parents getting tired of living with their adult children or adults getting sick of living in such close quarters with their children, the need for more space is in high demand. The quick move by the federal reserve to drop interest rates has given home buyers a nudge to enter the market as first time homeowners or those looking to upgrade their current living situation. Although low interest rates make monthly payments more affordable they have an adverse effect on home prices, continuing to extend the upward swing of the post “Great Recession” era. Here are some key points the data shows.
- Number of Homes – The amount of inventory listed on the market has continued to dwindle over the past year as the number of buyers entering the market continues to increase. The number of closed sales has seen a slight increase with the number of pending sales beginning to surge. We should begin to see the market effects of pending sales within the next couple of months.
- Average Home Price – As the number of pending sales increase and the number of listings continue to decrease, with low interest rates, home prices are on the rise. The closing sales price of homes are beginning to increase alongside current listing prices as supply is not meeting demand.
- Absorption Rate – With buyers continued appetite for real estate there is no where for sales prices to go but up until affordability begins playing a more significant role.
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