Fewer and Fewer Young Families Are Buying Homes in Fresno

A few years ago, the movement of the real estate market in the city of Fresno has been monitored by the National Association of Realtors, in order to analyze the impact that price fluctuations in homes and mortgage interest rates have on the market in the city.

This analysis, to date, has determined that despite the fact that home prices are now somewhat high and the increase in interest rates is causing fewer people to apply for mortgage loans, the city of Fresno still has a sales movement and the real estate market is dynamic.

But although property purchases are not decreasing, so far, agents point out that there are signs indicating that property acquisition is becoming more frequent among adults and that young families are increasingly far from buying a home.

In light of this situation, many young families consulted agree that high interest rates are distancing them from the possibility of being able to buy their first home, but they will eagerly wait for these rates to drop in order to apply for a mortgage loan so that the dream of having a space of their own to grow as a family becomes a reality; because just like the rates, the current prices of homes are so high that they make them unaffordable for them.

And although mortgage lenders expected the Federal Reserve to make another interest rate cut, like the one made in November, the truth is that with the victory of the future president, bonds increased and with them the interest rates on mortgage loans.

Therefore, just as lenders, real estate agents in the city of Fresno believe that it is necessary for administrative authorities to create another type of commercial strategy, housing fund, or subsidy so that young families can buy a home.

However, the young real estate market in Fresno is not only affected by high interest rates but also by the commercial preferences of young people. Currently, young families are more likely to buy new vehicles, which significantly reduces their credit capacity to later qualify for a home loan.

Another factor influencing the housing market for young families is the competitiveness generated when making the property payment. Currently, Fresno has set a record in the number of people paying for a property in cash in the city. This situation makes it more difficult and competitive to buy a house, as young families are less likely to have all the necessary money to buy a house for the first time.

As younger families that are just starting to form as such, many of these people come with debts incurred previously, such as credit card payments or student loans, which considerably reduce their borrowing capacity, and therefore, they are not very sought after by lenders or banks.

Available foreclosures:

Fresno: 1,200  homes available.

By Elías DaSilva | 21 de Noviembre de 2024.