Stars are Aligned For Fresno, Clovis CA Buyers
Posted by Harold Penner on Tuesday, July 13th, 2010 at 6:43pm.January 2009 -- 2009 is going to be one interesting year for Fresno and Clovis Real Estate. Looking at the local statistics, while I can’t predict that the bottom of the market has come, I do know that 2009 buyers are going to look back at this time and be thankful that they bought.
There are a number of reasons for this:
Foreclosures Are Still Rising
2008 began with an average of 900 foreclosure properties on the market in Fresno and Madera , California and ended with nearly 1500. Even more telling, only 28% of sales in January 2008 were foreclosures. When we ended the year, December 2008 sales were comprised of 64% foreclosures.
Nationally, news has been buzzing with the latest in the search for the right approach to solve the problem of foreclosures. One particularly interesting report tracked the percentage of homeowners who continued to miss payments after receiving refinancing (lower interest rate, lower payments, etc.) from their banks. 37% had again missed one payment after 3 months and 55% missed at least one payment after six months. This would suggest that refinancing may not be the answer.
Click Here to view this report.
The bottom line is that as long as foreclosures increase the price of homes will continue to be affordable and now will be a wise time to buy.
Interest Rates Lowest in 37 Years
In an effort to encourage home buying and refinancing, home loans rates are now historically low and currently hover around 5.0% for your primary residence.
Click Here for the latest mortgage rate news.
TIPS FOR 2009
Consider Refinancing
If you are currently at least 6.5% or higher on your rate and you intend to own your home for at least three more years, it may be wise to consider refinancing. First call the 800 number on your loan statements and ask for their refinancing department. You may get a better package by staying with your current bank and dealing with them directly. Then contact a lender and compare. If you would like a recommendation for a local lender, please let me know.
Consider Buying Rental Property
Home prices have fallen in some areas to the pre-housing boom of 2002. Yet, rental rates remain steady in Fresno and Clovis. A high rate of foreclosures means that many new renters are looking for homes.
At the same time, we are once again back to the days where purchasing an investment home means immediate cash flow from rental payments. This means an automatic and steady income for investors. If you would like to be emailed a selection of rental property investments, please contact me at the information below.
Check your Equity Lines
For obvious reasons, many homeowners are considering buying an investment or rental home for supplemental income. In some cases, they intend to use an equity line from their current home as a down payment. What they don’t realize is that many banks are removing that option based on adjusted values of the home. Check with your bank to see whether yours is still available. Otherwise, for an investment property, you will need a 20% down payment in almost all cases.
To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com
2008 STATISTICS AT A GLANCE*- Fresno and Madera Counties
Avg. Sales Price:
Year Avg. 2008 - $191,451
Year Avg. 2007 - $292,000
City of Fresno Average - $277,090 (2007) vs. $214,208 (2008)
City of Clovis Average $357,921 (2007) vs. 269,497 (2008)
Number of Active Bank-owned Properties
March 2008 – 968
December 2008 - 1492
Number of Active Short Sales Properties
March 2008 – 762
December 2008 – 940
Average Listing Price (Resale)
March 2008 - $300,469
December 2008 - $264,640
Average Listing Price (Foreclosure)
March 2008 - $241,728
December 2008 – $144,045
Average Selling Price (Resale)
March 2008 - $ 282,361
December 2008 - $248,342
Average Selling Price (Foreclosure)
March 2008 - $229,658
December 2008 – $140,868
Total Homes Sold
Total Units Sold in 2008: 7,877
Total Units Sold in 2007: 5,528
2008 Summary
7,877 Total Units Sold:
3,975 Foreclosure Properties (50.5%)
403 Short Sale Properties (5%)
3499 Resale Properties (44.5%)
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*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
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