Fremont Housing Market Forecast 2017: Price Cooling Ahead?

Do you have questions about the current state of the Fremont real estate market? You’ve come to the right place. Below, we have rounded up some current real estate trends as well a Fremont housing market forecast for 2017.

Fremont Home-Price Trends During 2016

Home prices in Fremont, California rose by around 5% during 2016, according to the real estate data company Zillow. But if you look at data provided by the Bay East Association of REALTORS®, you’ll see a different story.

According to a recent report from the local Realtor group, the median sales price in Fremont was $878,725 as of December 2016. By their estimation, that number represents a slight decline from the same month in 2015. The group reported a 1% increase in the average sale price (which is different from the median) during 2016. Either way, that’s a fairly flat market. So it appears that home-price appreciation slowed in 2016, compared to the two previous years.

Housing Market Forecast for 2017: More of the Same?

The economic research team at Zillow recently offered a forecast for the Fremont real estate market in 2017. The company expects home prices in the city to rise by a modest 1% over the next 12 months (January 2017 – January 2018).

This housing market forecast resembles the outlook for the broader Bay Area. In many cities across the region, home-price appreciation is expected to slow down during 2017. Some economists see this as a market correction. Prices rose sharply over the last few years, to the point that they outpaced income growth. Such trends are generally not sustainable over the long term. So the modest forecast for the Fremont real estate market in 2017 could simply be a return to normalcy.

The good news is that the widely anticipated cooling trend could ease some of the housing affordability issues we’ve seen across the Bay Area.

Tight Inventory Creates Stiff Competition in Fremont

As we’ve seen, some forecasts for the Fremont, California housing market are suggesting that prices will rise modestly in 2017. But the local real estate market will continue to be highly competitive over the coming months, as a result of limited inventory. In short, there aren’t enough homes on the market to satisfy the current level of demand.

A real estate market with five to six months worth of inventory is said to be “balanced.” When supply falls below that level, you have a sellers’ market. According to the latest data from the Bay East Association of Realtors, Fremont had “approximately 1 month of inventory” at the end of 2016. That’s clearly a sellers’ market.

As a result of constrained inventory, home buyers in Fremont will have to compete for available properties. This is true for much of the Bay Area housing market. Even with slower home-price appreciation, there just aren’t enough homes on the market to meet demand in many cities.

Mortgage Rates Surged at End of 2016, Could Climb Higher in 2017

Here’s another trend that could affect the Fremont housing market in 2017. During the last two months of 2016, mortgage rates took a sharp upward turn. The average rate for a 30-year fixed mortgage rose from around 3.5% at the start of November 2016 to 4.32% by the end of the year.

Mortgage rates eased a bit at the start of 2017. But several industry watchers, including the Mortgage Bankers Association, expect them to rise gradually over the next 12 months.

Here’s the bottom line for Fremont home buyers in 2017. Home prices are expected to rise very slowly over the coming months, or even remain flat. So there’s not much urgency there. But mortgage rates could continue along their upward trend. As a result, postponing your purchase until later in the year could cost you.

Additionally, there’s a high level of competition among buyers right now, due to limited inventory. So make sure you have your financial “ducks in a row” before entering the market. This includes getting pre-approved for a mortgage before making an offers.

Disclaimer: This story contains predictions and forecasts for the Fremont, California housing market in 2017. These were provided by third-party sources not associated with our company. We have compiled and presented them here as a service to our readers.

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