|
Fresno/Clovis Real Estate News
Jed, Riley, Aubrey, Austin, and Beckett enjoying time at Carmel Beach, together this past month. Boogie boarding, kyakying, digging, and playing in the river were a few of the highlights!
Market News
Investors Buying More of the U.S. Housing Market than Ever Before
Rising home prices have done little to dampen the demand for flipping houses or turning them into single-family rentals. In fact, the share of investor purchases of U.S. homes has climbed to an all-time high. More than 11% of U.S. home purchases in 2018 were by private-equity firms, real-estate speculators and others who buy properties, often in "bulk."
Investor purchases are currently the highest on record and nearly twice the levels they were prior to the 2008 housing crash. These purchases by investors (usually with cash, up front) pose a challenge for first-time home buyers, especially millennials.
Investors began buying thousands of homes out of foreclosure during the housing bust when prices were low and mortgage froze. Analysts expected these types of purchases to slow as the market rebounded and prices increased, but demand has actually intensified. Strong rental demand, along with technology that facilitates buying homes online and low interest rates have fueled investor appetite.
The internet has made it a lot easier for smaller investors and even foreign buyers to purchase properties they may never seen, let alone visited. Demand is also shifting toward former industrial cities in the Northeast and Midwest where prices remain low.
The biggest markets for investor purchases in 2018 were Detroit, followed by Philadelphia and Memphis, where home prices are still low enough for investors to profit by renting them out. Investors bought nearly half the starter homes in Philadelphia last year and about 40% of lower-priced homes in Detroit, according to CoreLogic.
Investors pose an especially powerful force at the bottom of the market, as they often pay all cash. Investors purchased one in five homes in the bottom third price range in 2018, according to analysis by CoreLogic, which was up 5 percentage points from the 20-year average of less than 15%.
The trend appears to be continuing for the foreseeable future as the aforementioned economic climate allows for profits for those entities purchasing the home and renting them out.
May by the Numbers*
Fresno Multiple Listing Service Numbers
- Number of homes for sale 2018 vs. 2019 - 2278 vs 2564
- Median price of sold homes in 2018 vs. 2019 $292,000 vs. $292,000
- Months of homes in inventory before closing in 2018 vs. 2019 - 1.9 vs. 2.4
Unless otherwise specified, all numbers are Fresno County through 5/19.
Client Quote
The Penner team blew my socks off! They were polite, professional, and kind. Our house sold really quickly at above asking and it was all due to the resourceful and knowledgable staff. We would work with them again in a heartbeat!
Zach Smith - 1629 N Arthur
Featured Listing
1867 Whiteash Ave. Clovis, CA. 93619
- 4 Bedroom 4 Bathroom
- 2839 Sq Ft
This stunning home has it all. Built in 2015, this home has 2839 sq ft, 4 bedrooms, 3.75 bathrooms. As you walk into the home you see the large, bright living room with elevated ceilings, rich laminate wood flooring, a spacious formal dining room area, and tons of natural light. The gorgeous kitchen has a gas freestanding range over, stainless steel appliances, gas appliances, stylish white cabinets, a great pantry, and opens into the eating area and living room. Rounding out the downstairs is an isolated bedroom and bathroom with paneled walls, perfect for an in-law set up. Upstairs is a great loft and 3 other bedrooms. The master suite has a large walk-in closet complete with closet organizers, a his/her vanity, clean white tile, a separate soaking tub and great tile floors. Across the hall is another large bedroom with an attached bathroom. The backyard has a large covered patio, a grass area, a cinderblock back fence, is eastward facing for evening shade. This is a must see!
|
