Here is why property prices are going to climb in 2025 in Fresno

Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Fresno real estate spreadsheet template.

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Expecting a decrease in Fresno's prices in 2025? Think again.

Several factors are set to push costs higher, from growing demand to limited resources.

Let's explore why Fresno's prices are on the rise and what it means for you.

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) In Fresno, there are only about "0.34 homes" for each person, which is quite limited

Signal strength: strong

The fact that there is around 0.34 home per inhabitant in Fresno indicates a limited housing supply relative to the population. This low ratio suggests that housing demand is likely to exceed supply, which often leads to rising prices.

In Fresno, a unique local factor is the strong agricultural industry, which attracts workers and their families to the area. This influx of people increases the demand for housing, further straining the already limited supply.

As more people move to Fresno for job opportunities, the competition for available homes intensifies, driving up prices. With such a low number of homes per person, the market is primed for price increases.

If the ratio were to increase to around 0.5 home per inhabitant, it might suggest a more balanced market, potentially stabilizing prices.

Source: USCensus

2) Redfin considers the Fresno real estate market to be "very competitive."

Signal strength: strong

The fact that Redfin ranks the Fresno real estate market as "very competitive" is a strong indicator that housing prices are likely to rise in 2025.

In Fresno, the most competitive properties are single-family homes located in the Clovis area, which are highly sought after. This is because Clovis offers excellent schools, a family-friendly environment, and proximity to amenities, making it an attractive place for families to settle.

As demand for these properties increases, the competition among buyers drives up prices, which is a classic economic principle. When more people want to buy than there are homes available, the limited supply leads to higher prices.

If the market were to become "less competitive", it would suggest that demand is decreasing, which could potentially lead to stable or declining prices.

Source: Redfin

3) Fresno home values have risen by 6.0% since last year, and this trend may persist

Signal strength: strong

The fact that home values in Fresno have already changed by 6.0% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is growing, and if this trend continues, it could lead to even higher prices in the future.

Currently, the median home price in Fresno is around $379,920, which is a significant figure for potential investors to consider. Additionally, the median sales price per square foot is approximately $251, reflecting the value buyers are willing to pay for space in this market.

These numbers indicate that Fresno's real estate market is becoming more attractive, and if the trend persists, prices are likely to rise further by 2025. For investors, this could mean a promising opportunity to gain returns on their investments.

However, if the annual change in home values were to drop below 2%, it might suggest a cooling market, challenging the assumption of rising prices.

Source: Redfin

4) Three major websites confidently predict that home prices in Fresno will rise in 2025

Signal strength: strong

There are three major websites forecasting a positive growth for home prices in Fresno in 2025.

Among these, Realtor is the most optimistic with a forecast of 5.10%, followed by Redfin at 4%, and finally, Zillow predicts a 1.80% increase. This range of predictions shows a significant gap in expectations among the forecasters, which is important to consider.

While these forecasts are encouraging, it's crucial to remember that predictions should be taken with caution as they are based on various assumptions. We will also rely on strong, reliable, and actual data to make a professional judgment about the market.

If these forecasts were to predict a negative growth instead of positive, it would signal a different trend for the housing market in Fresno.

Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts

5) Fresno's of 4.5% shows a bustling, competitive market with most spaces filled

Signal strength: moderate

The vacancy rate in Fresno is currently at 4.5%, which is considered very low and suggests that most properties are occupied.

This low vacancy rate indicates a high demand for housing in the area, which often leads to increased competition among renters and buyers. When demand is high and supply is limited, housing prices tend to rise as people are willing to pay more to secure a place to live.

In Fresno, properties that are easily rented are typically well-maintained single-family homes located in desirable neighborhoods such as the Tower District. These areas are popular due to their proximity to amenities and vibrant community atmosphere, making them attractive to potential renters.

If the vacancy rate were to increase significantly, say to above 7%, it might indicate a shift towards a less competitive market, potentially stabilizing or even lowering housing prices.

Sources: NeighborhoodScout, DataUSA, USCensus

6) Fresno's "Livability" score of 63 indicates a favorable living environment

Signal strength: moderate

The livability score of 63 in Fresno is considered good because it reflects a balance of amenities, cost of living, and community satisfaction. This score indicates that Fresno offers a comfortable lifestyle with access to essential services and recreational activities, which are attractive to potential residents.

One specific characteristic that contributes to this score is Fresno's proximity to natural attractions like Yosemite National Park, which enhances the quality of life for outdoor enthusiasts. Additionally, Fresno has a strong agricultural economy, providing job opportunities and fresh produce, which are appealing to families and individuals seeking a stable environment.

Moreover, the city's cultural diversity and community events foster a welcoming atmosphere, making it a desirable place to live. These factors collectively suggest that the demand for housing in Fresno is likely to increase, potentially driving up prices in 2025.

If the livability score were to drop below 50, it might indicate declining conditions, which could deter potential buyers and investors, leading to stagnant or decreasing housing prices.

Source: AreaVibes

7) In Fresno, about 41% of homes sell for more than their listing price

Signal strength: moderate

In Fresno, around 41% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is intense and they are eager to secure a property.

This kind of market behavior typically suggests that housing prices are likely to rise in the near future. As demand continues to outpace supply, sellers can expect to receive multiple offers, often above the asking price, driving prices upward.

For someone considering investing in real estate, this trend indicates a potential for property value appreciation over time. However, if the percentage of sales closing above the listing price were to drop significantly, say below 20%, it might suggest a cooling market where prices could stabilize or even decrease.

Source: Zillow

8) In Fresno, home prices have consistently risen by an average of 8.6% each year over the past decade

Signal strength: moderate

The fact that home prices in Fresno have appreciated at an average rate of 8.6% over the last decade is a noteworthy signal for potential investors. This historical growth rate suggests that there has been a consistent demand for housing in the area.

When we see such a positive 10-year average home value appreciation, it often indicates a trend of increasing prices. This trend can suggest that the market conditions are favorable for future price increases, making it an attractive prospect for investment.

However, it's important to remember that past performance doesn’t guarantee future results, and market dynamics can change. Despite this, historical data remains a valuable indicator to consider when evaluating potential investments.

If the average appreciation rate were significantly lower, such as below 3%, it might suggest a less robust market, potentially signaling a different investment outlook.

Source: NeighborhoodScout

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So, are prices going to climb in Fresno in 2025? Absolutely!