Fresno Housing Market Predictions for 2018
A realtor economist stated that the housing prices in California are expected to keep rising for the next 3-5 years. While Fresno exists in its own world when it comes to real estate, the prices are continuing to rise here as well. Although, comparably, Fresno’s current median home price is a mere fraction of California’s overall median home price prediction for 2018. California’s median home price prediction is at $561,020 while Fresno’s is at $221,600.
Fresno’s market trends indicated an increase by $10,000 or 4% in median home prices over the past year. The average price per square foot went from $133 per square foot to $144 per square foot.
With home prices rising, fewer people are able to afford them. And with rent rising, it makes it harder and harder for people to save up for a down payment. Only 26% percent of Californian’s will be able to afford a home in 2018.
Mortgage rates are also expected to rise slightly in 2018. Mortgage rates were at 4% in 2017 and are expected to rise 4.3% in 2018. If rates were to rise more rapidly, then real estate would take a hard hit, but at the moment it’s on a steady rise.
So what does this mean for first-time home buyers? It’s not great, but it’s not too horrible. There isn’t a lot on the market right now for first-time home buyers unless new developments are being built. With new developments, prices tend to be lower and more affordable for first-time home buyers.
Home sales are expected to be slow at the beginning of the year but will speed up when it gets closer to summer.
While the 2018 housing market is bad for some, it’s good for others. It’s definitely a seller’s market right now, so if you have been on the fence about putting your house up for sale, now is the time to do so.