What to expect in Fresno housing market to start 2024

FRESNO, Calif. (KFSN) -- Both buyers and sellers hope to see a steady drop in interest rates this year.

Paul Salazar at Sierra Pacific Mortgage says the mortgage interest rate has dipped dramatically to 6.75% since hitting a high of 8.25% in October.

Additional relief is within reach.

"On the interest rates, the Fed is saying by June, we're looking at anywhere from mid-6's to high fives, which is fantastic," he said.

That could bring more home buyers back into the market.

But the real estate brokerage Redfin already regards Fresno as one of the most competitive cities in the US.

San Jose, Richmond, Virginia and Rockford, Illinois go 1-2-3.

Fresno though comes up in the ninth spot.

"But the problem that you're going to start seeing is the inventory is low," Salazar said. "It hasn't started picking up but with that being said, you're going to have multiple buyers on one property. And I tell people this, this is the quote I always tell people: You marry the house but you date the interest rate."

You can always refinance your interest rate at a later date.

In November, a Fresno home typically received three competitive offers and the house would sell in 18 days. The median sales price was $371,000.

Salazar figures the competition will get even tougher this year.

"Here's the situation that's going to happen -- when the interest rate is coming down, that means there's going to be more buyers on the market," he said. "Those people who said we're going to wait or on the sidelines, are going to start coming on the market. Instead of one or two people competing against the house, you're going to have four or five people competing on the house."

Salazar says if you crunch the numbers from the October peak to today, the interest rate drop has resulted in a monthly mortgage that is $325 cheaper.

If you do plan to do some house-hunting, it is best to get pre-qualified.

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