June Update: Largest Home Inventory Ever in Fresno County?
Listings are way up
The buyer’s market in Fresno County is unmistakable. In Clovis, the number of homes for sale is up 16% from last year, with total active listings surging 48%—and 34% of those listings have reduced prices. In the City of Fresno, homes for sale are up 9%, active listings have risen 38%, and 38% of listings have seen price cuts. These are numbers we have not seen in a long time.
Nationally, Redfin reports a record imbalance: there are 34% more sellers than buyers, the widest gap since 2013.
Economic signals are mixed. Consumer confidence rebounded in May, fueled by a U.S./China trade agreement that lifted optimism.
The stock market has also recovered, temporarily putting off predictions of an imminent recession.
In housing, high mortgage rates, steady delinquency rates, and a third consecutive month of declining construction spending are keeping the market on pause as developers adopt a wait-and-see approach.
What’s going on with mortgage rates: Mortgages are currently around 6.9%, up from 6.6% in early May.
Fluctuating Treasury rates, influenced by inflation fears, tariffs, and economic uncertainty, suggest mortgage rates may stay in the 6.5%–7% range through 2025, with the potential for slight declines if economic conditions stabilize.
At the beginning of the year, there were expectations for falling rates to make house payments cheaper but that trend is much more uncertain now.
Bottom line: Buyers now have more choices and negotiating power than ever, while sellers face increased competition. Concerns about the economy are keeping some buyers out of the market which strengthens the hand of those looking to buy now.
What’s next: With inventory at multi-year highs, expect this buyer-friendly trend to persist through the summer buying season.
Some bonus news: Clovis was recently ranked as the 22nd best place to live in the United States inLivability.com’s Top 100 list.
Clovis was one of only two California cities to appear on the list that evaluated small to mid-sized cities.
What This Means for Buyers and Sellers
Buyers: With more homes on the market and price reductions common, this is a much more favorable time to explore your options. Expect new construction to see price declines and concessions more quickly. Negotiating with sellers is the key to getting the best price.
Sellers: Competition is much heavier than the past few years. Pricing competitively and offering concessions can help your home stand out.
Fresno County Market Update
The Fresno housing market reflects the buyer-friendly shift. The median home price dropped to $425,000, down another 2% from the previous month.
Prices are flat from last year, only up 0.7%.
More homes are being sold, up 16% from last year.