Will it Crash in 2024?

The Fremont housing market currently leans towards a seller’s market, characterized by high demand, swift sales, and homes frequently selling above the listed price. Buyers should be prepared for competitive conditions and may need to act decisively to secure their desired properties.

Fremont’s real estate landscape has seen notable changes in December 2023, reflecting a dynamic market with both challenges and opportunities. The median home prices surged by 3.2%, reaching a substantial $1.3M. This uptick in prices is indicative of the city’s resilience and attractiveness to prospective homebuyers.

Fremont Housing Market Trends

How is the Housing Market Doing Currently?

According to Redfin, on average, homes in Fremont are now selling after just 13 days on the market, showcasing the accelerated pace compared to the previous year’s 18 days. However, despite the faster sales, there was a decrease in the total number of homes sold, with 85 transactions recorded in December 2023, down from 99 in the same period last year.

How Competitive is the Market?

Fremont stands out as one of the most competitive real estate markets, evidenced by the swift pace at which homes are bought and sold. The city’s housing market is characterized by intense competition, with homes typically receiving multiple offers, often with waived contingencies.

Key Competitive Metrics:

• Homes Sell in 12 Days: The urgency in the market is apparent, as the majority of homes find buyers within a mere 12 days.
• Multiple Offers: A common occurrence, with most homes attracting several offers, emphasizing the high demand.
• Above List Price: On average, homes sell for approximately 4% above the listed price, showcasing the willingness of buyers to pay a premium for desirable properties.
• Hot Market Conditions: In particularly hot conditions, homes can sell for about 9% above the list price, further illustrating the competitive nature of the market.

Sale-to-List Price and Other Metrics:

• Sale-to-List Price: The current sale-to-list price ratio is 103.9%, marking a significant increase of 5.9 percentage points year-over-year.
• Homes Sold Above List Price: A substantial 62.4% of homes are now sold above the listed price, reflecting a remarkable 31.0 percentage point increase compared to the previous year.
• Homes with Price Drops: The market’s resilience is evident in the decrease in homes with price drops, which now stand at 16.7%, a 3.6 percentage point reduction year-over-year.

Are There Enough Homes for Sale to Meet Buyer Demand?

While the demand for homes in Fremont remains high, the decrease in the number of homes sold in December raises questions about the adequacy of available inventory. The competitive nature of the market suggests that the supply may not be meeting the robust demand, potentially leading to increased pressure on buyers.

What is the Forecast?

The current trends in Fremont’s housing market indicate a robust and competitive environment. However, prospective buyers should stay vigilant as the dynamics may evolve. Market forecasts should be closely monitored to make informed decisions in this dynamic real estate landscape.

Factors Contributing to the Strong Fremont Housing Market

• High demand: Fremont is a desirable place to live, with good schools, a strong job market, and a close proximity to San Francisco. This has led to a high demand for homes in the city.
• Low supply: There is a limited supply of homes available for sale in Fremont. This is due to a number of factors, including the city’s limited land area and the fact that many homeowners are reluctant to sell their homes in the current market.
• Rising interest rates: Interest rates have been rising in recent months, but they are still relatively low by historical standards. This has helped to keep demand for homes strong in Fremont.

Fremont, CA Housing Market Report 

According to Realtor.com, the median listing home price in Fremont, CA stood at $1.3 million in December 2023, experiencing a -4.9% year-over-year decline. The median listing home price per square foot was $767, and the median home sold price mirrored the listing price at $1.3 million.

One noteworthy metric that defines the competitiveness of the market is the sale-to-list price ratio, which was 101.41% in December 2023. This indicates that homes in Fremont, CA were selling for 1.41% above the asking price on average, highlighting a strong demand compared to the listing prices.

Fremont, CA was characterized as a seller’s market in December 2023, signifying a scenario where demand from buyers surpassed the available housing inventory. This trend contributes to a competitive landscape where sellers have the advantage.

Understanding the pace at which homes are sold is crucial. In Fremont, CA, the median days on market was 45 days in December 2023. This indicates that, on average, homes took 45 days to secure a buyer. Examining the trend over the past year, the median days on market have increased slightly compared to the previous month but show a modest decrease compared to the same period last year.

Will the Fremont Housing Market Crash?

It is difficult to say for sure whether or not the Fremont housing market will crash. However, there are a few factors that could lead to a decline in home prices in the city. These factors include:

• A recession: If the United States enters a recession, it could lead to a decrease in demand for homes in Fremont. This is because people would be less likely to buy homes if they were worried about losing their jobs or if their incomes were decreasing.
• A significant increase in interest rates: If interest rates were to rise significantly, it could make it more expensive for people to borrow money to buy homes. This could also lead to a decrease in demand for homes in Fremont.
• An oversupply of homes: If the supply of homes in Fremont were to increase significantly, it could lead to a decrease in home prices. This is because there would be more homes available for sale than there were buyers.

Overall, the Fremont housing market is expected to remain strong. However, there are a few factors that could lead to a decline in home prices in the city. If you are considering buying a home in Fremont, it is important to be aware of these factors and to factor them into your decision.

Why Are Homes Expensive in Fremont, CA?

Fremont, California, is known for its desirable location in the Bay Area, offering proximity to major tech hubs and a high quality of life. Several factors contribute to the expensive real estate market in Fremont.

1. Location and Proximity to Job Centers

The city’s close proximity to major technology and business hubs such as Silicon Valley and San Francisco makes it an attractive location for professionals working in the tech industry. The demand for housing from high-income earners in these sectors drives up prices.

2. Strong Job Market

Fremont benefits from a strong job market with a concentration of well-paying jobs in the technology and manufacturing sectors. This economic stability contributes to a higher demand for housing, impacting prices.

3. Limited Housing Supply

The availability of land for new construction is limited in Fremont due to geographical constraints and land-use policies. This scarcity of land contributes to a shortage of housing units, leading to increased competition among buyers and driving up prices.

4. Desirable Community Amenities

Fremont boasts a range of community amenities such as parks, schools, and cultural attractions, making it an attractive place to live. The high demand for homes in a desirable community further intensifies the competition among buyers, pushing prices higher.

5. Strict Zoning Regulations

Zoning regulations in Fremont can be stringent, limiting the ability to build high-density housing. This contributes to the scarcity of available housing and puts upward pressure on prices.

6. Commuter-Friendly Location

Fremont’s accessibility and commuter-friendly location make it an appealing choice for those working in nearby cities. The high demand from commuters contributes to the competitive housing market and elevated prices.

Understanding these factors helps shed light on why homes in Fremont, CA, come with a higher price tag. The combination of a strong job market, limited housing supply, and desirable location creates a real estate landscape where demand consistently outpaces supply.

References:

• https://www.realtor.com/realestateandhomes-search/Fremont_CA/overview
• https://www.redfin.com/city/6671/CA/Fremont/housing-market