Housing Watch: Despite increased prices, Fresno remains hot housing market
Last year, 51% of Fresno homes sold above the asking price, while 28% saw price drops before they were purchased.
FRESNO, Calif. (KFSN) -- Despite a spike in home prices during the pandemic, you still get more bang for your buck in the Valley compared to other areas of California.
Fresno ranks 50th on a list of the 100 largest US cities on RealtyHop's Housing Affordability Index.
"Basically, we look at median household income, median list price, the monthly mortgage payment as well as property taxes," says RealtyHop Data Scientist Shane Lee.
Lee says they took that data to calculate the share of income needed to buy a home.
Fresno home buyers need to spend 34.29% of their income to be able to afford a home.
It's still a little on the high side.
"When we measure affordability, we try to keep that under 30% for the average American right because you don't want more than 30% of your annual income going to housing," Lee said. "That leaves you with not much for savings or other essential items."
Los Angeles and Miami topped that list. 81% of the median income is needed to buy homes in those markets.
Sales in the Valley may have slowed, but Fresno went into 2023 ranked by Construction Coverage as the 16th hottest housing market in the country.
The study looked at several factors.
"It includes things like median sale to list price ratio, time spent on market, year over year price increases and a couple of other indicators," says Construction Coverage Editor Michael Welker.
Last year, 51% of Fresno homes sold above the asking price, while 28% saw price drops before they were purchased.
Local realtors say homes have been staying on the market longer, which works in favor of buyers because there is more room to negotiate a deal.
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