Parts of the Central Valley housing market have rebounded recently, resulting in a 60% increase in inventory and the median price of existing homes in Fresno surpassing $200,000 for the first time since 2008.
“Inventory is back. This is good for buyers. Buyers now have more selection,” according to president of London Properties real estate group Patrick Conner who spoke to the Fresno Bee. Sellers will also benefit from higher returns on their investments.
Despite the recent fluctuations in the pricing of Fresno County homes, those prices have begun plateauing.
The last time prices hit the $200k mark and remained there consecutively (as was the case these past two months) was in July of 2008, the Bee reports.
The current median price of homes in Los Angeles is $455,000. A list of median home prices throughout the Golden State can be seen here.
Experts have concluded that prices have been driven up due to a low inventory of homes for sale in conjunction with demand among buyers and a steep reduction in foreclosures over the past few years, notes the Bee.
However, this valuation might not hold for very long. According to president of the Fresno Association of Relators Liz Kuchinski, despite “strong” home prices, the market will readjust itself if the homes “are not selling,” notes the Bee. “We’ve been watching the statistics [statewide]. It sounds like everybody has had a slowdown,” Kuchinski said.
The start of the school year and the approaching holiday season are traditionally slower periods in the real estate market. Kuchinski noted that California’s drought could also be a deterrent for buyers and sellers alike.
The drought has been affecting businesses throughout the state, which has some entrepreneurs looking to alternative businesses if the dry trend does not abate over the next year.