Gary Carter, president of the Fresno Association of Realtors, offered an optimistic assessment for residential real estate in 2024 at the Feb. 7 Fresno Rotary Club meeting. Fresno Rotary Club photo

Gary Carter, the new president of the Fresno Association of Realtors, spoke to the Fresno Rotary Club Jan. 29 to share his outlook for residential real estate as interest rates decrease and inventory increases.

Carter, a Fresno State graduate, is a team leader with Movoto Real Estate. He became a Realtor in 2002.

He said California existing single-family home sales totaled 224,000 in December 2023, flat from November and down 7.1% from December 2022. December’s statewide median home price was $819,740, down 0.3% from November and up 6.4% from December 2022.

For the year, statewide home sales were down 24.8%. At the regional level, home prices increased in all major regions from a year ago in December. California’s 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 an existing single-family home was $398, up from $373 in December a year ago. Carter said the 30-year, fixed-mortgage interest rate averaged 6.82% in December, up from 6.36 percent in December 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

 

The sales-to-list-price ratio is an indicator that reflects the negotiation power of homebuyers and sellers under current market conditions. Home sales prices decreased by 10.2% on a year-to-year comparison.

The median time that Fresno homes were on the market was 21 days, meaning that half of the homes listed sell within 21 days, said Carter.

Southern California (6.3%), the Central Valley (5.5%), and the Far North (4.1%) registered an increase in median prices from a year ago in December, but growth was more moderate. In Fresno, existing home sales were 241, down 6.9% from last year. The median home price stood at $365,000, a 2.7% decrease from last year. There are 462 active listings in Fresno, a 14.9% decrease from last year.

Carter said that in 2024, people can expect to see a brighter side of real estate as the demand for housing will recover from falling mortgage rates and rising income.

Housing inventory is also expected to rise by around 30% as more sellers begin to list after delaying selling over the past two years. The 30-year fixed mortgage rate is expected to average 6.3% after more than 8% in 2023, and the Federal Reserve is expected to cut rates four times.

Carter explained the differences between buying or renting a home, which is a common topic of discussion for Realtors. Buying a home builds equity that could be accessible through home equity products. It helps build credit with no landlord to answer to, offering more stability and possible tax benefits.

On the other hand, renting can create boundaries for individuals. Renting requires substantial money upfront, and tenants could lose money if home values decline. There are also extra expenses beyond mortgage payments, rising home prices, and low inventory in many markets. Additionally, tenants are responsible for the cost of repairs and maintenance.

The National Association of Realtors is currently involved in litigation against some of the nation’s most prominent real estate brokerages to pay almost $1.8 billion in damages after finding they artificially inflated commissions paid to real estate agents.

Carter was not able to comment on the litigation in progress, but he preached how essential real estate agents are when selling or buying a home.