January 2023 Market Update

Home sales are down in the Fresno / Clovis area -36% YOY. But is the market crashing and is it a good time to sell your home?

These are questions people are asking us often right now. The answer is no, the market is not crashing and yes, it is still a good time to sell your home. Let’s take a deeper look..

Is the Market Crashing?

No, the market is not crashing, but it is much different than that of what we’ve experienced over the last several years. As you can see by the January 2023 numbers (for Fresno & Clovis), to say that it’s cooled off would be an understatement. It’s on ice.

Homes that have gone under contract (accepted offer/escrow opened,) have decreased a modest -9.3% YOY. However, the real news is that sold homes are down -36% YOY. And, activity is down substantially as well.

As the Federal Reserve has attempted to tame out of control inflation, they have raised the interest rates 8 times since March of last year. This is precisely what has culled the real estate market. Linda and I noticed immediate slowdowns with each rate increase. These rate increases have pushed affordability for many buyers out of range and they’ve had no choice but to retreat from their home search. 

Days on market (how long a home is for sale before an accepted offer) is up +105% YOY, from 20 days this time last year to now 41 days. This in essence tells the story that activity has cooled off and with it, buyers are taking their time and are substantially pickier.

Is it a Good to Sell Your Home?

I believe the answer to the question is a resounding yes. Although supply has increased by +89% YOY (.9 of a month to 1.7 months), it’s still historically low and even though the other numbers don’t necessarily bode well for the real estate market in general, at least here in the Fresno / Clovis Area, it’s a matter of supply and demand.

New Listings hitting the market have dropped -21.4% YOY. However, there are still buyers in the market that are actively hunting for their new home right now. Inventory is so low, that when clean, well kept homes do hit the market, they are getting snatched up with multiple offers. With supply being very low, and demand high from buyers still in the market, this is good news for home sellers.  And, if you are selling, this means less competition for your home from other listed properties. 

The average sales price has decreased by -6.25% YOY from 400K in January 2022 to 375K in January 2023. But, prices are still historically high, which is more good news for sellers. So, our take is yes, it is still a great time to sell your home.

We are closing escrow on a listing this week where the home was on the market for only 13 days, substantially beating the current average of 41 days, and, it had non-stop showings during its 13 days on the market. The home went into contract with an over-asking offer. This proves the point that the homes that are properly prepared and properly marketed are still selling fast and many times with multiple offers.

So, how did we get this home into contract in only 13 days when the average is 41 days as of last month?

Great question!

We aren't doing anything differently than that of what we've always done. We worked with our client to carefully prepare their home for the market and we then effectively marketed the home online. The key is in the preparation so we in essence, engineer the outcome we want in advance of the sale. 

We had a home inspection and pest inspection completed in advance of listing and then completed any repairs that were:  1. Health 2. Safety  or  3. Code related.  We cleared the pest inspection and had some plumbing issues taken care of that would have prevented the house from selling and/or caused a big reduction of sales price in escrow or cancelled all together. All of this was coordinated through our Gate12 Concierge where we scheduled all the inspections and project-managed the repairs using our deep bench of contractors. We also had our cleaning crew go through for a thorough cleaning before professional photography and the marketing collateral process began. 

When this home hit the market, it made an excellent first impression and gave prospective buyers that warm fuzzy feeling that they were making a sound decision and that this seller cared for their home with love, and that it was important to them to hand it off in its best possible condition to the new owner. Once again, we did not receive a request for repair from the buyer. This was a very smooth escrow with no hidden surprises. Exactly what we engineered up front. 

We had a recent conversation with a client who made a full-price offer on a home listed in the low 300K’s. The home ended up receiving multiple offers and the accepted offer was 15K over-asking. This client was of the impression that the market had cooled off and was surprised that the home sold for so much over-asking and with multiple offers. This is what most people are in fact thinking right now too. However, this was a home that had been properly prepared for the market and set itself apart from the rest of the competition.

In closing, people will always need to sell and buy homes (in any market), and the homes that shine like a diamond are always going to distance themselves from all the rest. If you are selling, you truly do only get one chance at a first impression, so make sure it’s a lasting one. We’ve been helping families do just that for the past decade now while simultaneously helping them to maximize their selling price to its fullest extent in the process.

If this is something you’re considering, give us a call and we’ll roll up our sleeves and get to work on helping you achieve your real estate goals and objectives.

All our Best,