Housing Watch: Fresno home sales down 24% in May compared to last year
Locally, several houses on the market are still drawing multiple offers.
FRESNO, Calif. (KFSN) -- High-interest rates and a low inventory have combined to slow down home sales in the valley.
Just as the weather conditions have changed, the housing market continues to cool.
Brian Domingos is president of the Fresno Association of Realtors.
"Springtime is usually a time when more people are out and about looking at new homes, checking out the new houses, different houses they want to move up to. What are you seeing out there? It's funny you mention that. This is the time when we're supposed to be seeing more houses come on the market. May, April, and June is when the inventory comes on. Spring cleaning, plant the flowers, get the home ready for the market and unfortunately we're not seeing that. Inventory is extremely low right now," explained Domingos.
The Fresno-Clovis area has just about a month and a quarter supply of available homes on the market.
A five-month inventory would be considered "healthy."
Sales are up 9% from last month.
But in May, the area saw a 24% dip in home sales from a year ago.
"A lot of that is due to sellers who have fantastic rates. They've refinanced over the years or purchased when the rates we're lower and so we have what's called the "lock in" effect, where they're not willing to sell their home because they can't replicate that interest rate," Domingos said.
Domingos adds 43% of homes in California are selling for more than their list price.
Locally, several houses on the market still draw multiple offers.
"Pricing is important, conditions important, taking care of some of those maintenance items. Fresh paint, curb appeal. Buyers, with the higher payment due to the rate, want to see a home that is move-in ready and they don't want an additional out-lay of cash to fix it up," said Domingos.
He doesn't expect mortgage interest rates to dip until the end of the year or the beginning of next year but says home buyers now seem to be adjusting their expectations.
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