Gary Carter, new president of the Fresno Association of Realtors, offered an optimistic assessment of residential real estate in 2024.Fresno Rotary Club Photos
Gary Carter, the new president of the Fresno Association of Realtors, spoke at the Rotary Club of Fresno on January 29 about the outlook for residential real estate as interest rates fall and inventory increases.
A graduate of Fresno State University, Carter is a team leader at Movoto Real Estate. He became a real estate agent in 2002.
He said total existing single-family home sales in California in December 2023 were 224,000, flat from November and down 7.1% from December 2022. The statewide median home price in December was $819,740, down 0.3% from November and up 6.4% from December 2022.
Statewide home sales fell 24.8% that year. At the regional level, house prices rose year-on-year in all major regions in December. The California Association of Realtors' statewide sales price to list price ratio* was 99% in December 2023 and 96.1% in December 2022.
The statewide average price per square foot for existing single-family homes was $398, up from $373 a year ago in December. Carter said 30-year fixed mortgage rates averaged 6.82% in December, up from 6.36% in December 2022, according to CAR calculations based on Freddie Mac's weekly mortgage survey data. said.
The sales-to-list price ratio is a measure that reflects the bargaining power of home buyers and sellers in current market conditions. Housing sales prices fell by 10.2% compared to the previous year.
Carter said the median time a Fresno home was on the market was 21 days, meaning half of the homes listed sold within 21 days.
In Southern California (6.3%), the Central Valley (5.5%), and the Far North (4.1%), median prices rose year over year in December, but the growth was more modest. The number of existing home sales in Fresno was 241, down 6.9% from the previous year. The median home price was $365,000, down 2.7% from last year. In Fresno, he has 462 active listings, down 14.9% from last year.
Carter said people can look forward to a bright side for real estate in 2024 as housing demand recovers due to lower mortgage rates and rising incomes.
Home inventory is also expected to increase by about 30% as more sellers start listing after slowing sales for the past two years. 30-year fixed mortgage rates are expected to average 6.3% and exceed 8% by 2023, with the Federal Reserve expected to cut rates four times.
Mr. Carter explained the difference between buying and renting a home, which is a common topic for real estate agents. Purchasing a home builds equity, which can be accessed through home equity products. It helps you build credit without having a landlord to answer to, giving you more stability and potentially tax benefits.
On the other hand, renting can create boundaries for individuals. Renting requires a large down payment, and tenants may suffer losses if home values decline. Many markets also have additional costs beyond mortgage payments, rising home prices, and inventory shortages. In addition, repairs and maintenance costs will be borne by the tenant.
The National Association of Realtors is currently suing several of the nation's leading real estate brokerages for approximately $1.8 billion in damages after it was discovered that they had artificially inflated the fees paid to real estate agents. .
Although Carter could not comment on ongoing litigation, he emphasized the importance of real estate agents in buying and selling homes.
