The Fresno Real Estate marketThe Fresno real estate market saw little or no upward movement while most of the California real estate markets were enjoying exponential growth in home price appreciation in the late 90s. But, after a decade of hibernation, the Fresno real estate market finally woke up and took off in 2001!
Since 2001, home prices in Fresno have appreciated well over 20% from year to year. This has resulted in Fresno homes appreciating about 100% or doubling in price in the last 5 years.
As of December 2004, median home prices in the Fresno Clovis area now stand at approximately $250,000. In comparison, median home prices in California are now well over $450,000.
While Fresno homeowners are undoubtedly delighted with the appreciation in home equity, it does not come without a price. Less and less people are able to afford to buy a home as the Fresno real estate market continue to prosper.
In Fresno County, the affordability has nose-dived from 41% in 2003 to 27% in 2004. This means that only 27% of households in Fresno County can afford to purchase a median-priced home, assuming a 20% down payment and current taxes and mortgage rates.
The Santa Barbara region was the least affordable in the state at 9%, followed by the Monterey region at 11%. About 15% of households can afford a median-priced home in the San Francisco Bay Area compared to 19% in the state overall.