Housing Watch: Outlook for Fresno's housing market in 2023

FRESNO, Calif. (KFSN) -- Just like Valley temperatures, the real estate market has cooled considerably over the past few months.

After watching home prices spike, Steve Flach, president of the Fresno Association of Realtors, says the new year will bring a return to normalcy in the housing market.

"2020 and 2021, the appreciation in our market was 18-20%, and that's just not sustainable and not healthy," he said.

Flach says a year ago, agents would meet with sellers and put the home on the market on a Thursday, show the home over the weekend and then on Monday, they would consider which offer to pick.

Now, buyers can take their time and ask for repairs to be made.

"Sellers are coming down on prices a little bit but again, this is good," Flach said. "If we look back two years ago, buyers were 'Take it or leave it.' and they were having to come in above appraised value, guaranteeing cash above appraised value."

That is no longer the case. Mortgage interest rates have dropped below 7%.

But homes which used to sell within two weeks in the past are now sitting on the market for much longer.

"So the average days on market for active listings is between 60-70 days right now," Flach said.

That flurry of activity has been replaced by a slower homebuying pace, which again, Flach says makes for a healthier market.

"I think the biggest thing we're going to see is in the number of transactions that we're closing, so that's going to go ahead and see a big reduction," he said.

Fewer home sales, but Flach adds with less competition in the market, buyers might be better able to find that perfect home.