Home prices in Merced and surrounding areas show steady growth

For potential home buyers in Merced, there are many factors that come into play when deciding if buying or renting is the right thing to do, but it usually comes down to affordability.

Armando Diaz, a real estate broker with Soldavi Real Estate Agency in Merced, said those who want to purchase a home rather than renting, should make sure the price is right for their budget and that they are not overextending themselves.

February 2025 data compiled by Redfin, a real estate data company, shows the median selling price of home in Merced was $423,000 with home prices increasing 6% compared to last year.

In Atwater, it was $400,000 with an increase of 9.6%, in Chowchilla, it was $399,000 with an increase of 10.1% and in In Los Banos, the median home selling price was $461,000, an increase of 0.2% compared to last year. Rocket, listed the median sale price for a one family, three bedroom home in Merced at $390,000 as of March 2025, an increase of 7.3% year-over-year.

Syreeta Bolton, chief executive officer with the Merced County Association of Realtors, described Merced County’s housing market as “stable,” in an email to the Sun-Star. Bolton suggests families interested in purchasing should search out a ealtor as well as assessing their finances. Getting pre-approved for a mortgage and investigating different finance options with your lender is also advised. Bolton said from there, a realtor can actively search for properties as well as assisting in making any offers and navigating necessary inspections and negotiations.

Diaz said it is a good idea for someone looking to purchase a home to make sure they will have about six months of reserves in their bank account after the purchase of the home.

“I’m just a big fan of trying to be conservative and not just push them in to home ownership,” Diaz said.

Bolton suggests using a mortgage calculator to determine how much you are able to borrow based on financial obligations and income, and to plan on owning the property for at least five years. As a rule, Bolton suggests keeping housing costs below 31%-40% of gross monthly income.

Bolton also advises checking your credit score and taking any steps needed to boost it before hunting for house, as a better score could also mean lower mortgage rates. It is also advised to make sure prospective home buyers understand the costs involved.

“Clearing debt is always a hot topic when I’m talking to a lot of the first time home buyers,” Diaz said. “Seeing what they have is important, and just game planning.”

Plan to pay property taxes and to carry homeowner insurance, said Bolton. Having a home inspection performed can also help buyers plan for any major repairs or routine maintenance. Condos or homes located in a community that offers shared facilities such as a pool, may require monthly association fees.

A down payment, closing costs, property taxes and repairs are other things buyers should keep in mind when shopping for a home.

Bolton added, “ideally, plan to put down at least 20% of your mortgage”. “The larger your down payment, the easier it will be to qualify for a mortgage and negotiate the lowest rate. Plus, when sellers review multiple offers, the more you put down the more competitive your offer will be with other bids.”

Ultimately, buying or renting comes down to individual circumstances, Bolton said.

“Buying is generally a good choice for long-term stability and equity building, while renting offers flexibility and lower upfront costs,” she said.

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