To most people, Bakersfield is known as the ‘armpit of California’. A small place where most properties are not worth much, and there is really no reason to live here. However, in the recent past people have started to realize that Bakersfield may not be the small back-country city that they have been thinking of! Bakersfield is starting to grow into one of the largest logistics and distribution hubs in the state, with the ability to reach up to 90% of CA’s population within a 4-5 hour drive. Not only that but Bakersfield has some of the highest production in Oil and Agriculture throughout the state and possibly even the country. On top of that, Bakersfield is well on its way to opening up its first Hard Rock Hotel and Casino.
All of this, combined with the fact that Kern County is pushing over 1 Million in population, Bakersfield is pushing over 400,000 in population, and the picture looks much different than most people are used to.
Sold Properties in Bakersfield
Looking at houses in Bakersfield, we have seen that the amount of houses sold, are starting to come down. There has been between a 2-4% decrease from the previous month, and the previous year numbers. This can look troubling, but you will also see that inventory has been going down as well. To me, this means that people are looking to stay in their homes versus selling their homes in Bakersfield.
Looking at the price per square foot of homes in Bakersfield, we can see that those numbers have gone up over 5% in the month over month, and year over year numbers. This jump is most likely because there has been a decrease in inventory, and even more buyers pushing into the Bakersfield market to buy homes.
Looking at average days on market, we can see that the numbers have gone down month over month by almost 13.5%. This shows that properties that are on the market are selling much faster this month than last month. As far as days on market versus one year ago, the days on market has gone up by almost 11.5%.
With the average price sold, as a percentage of asking price, we are seeing homes sell for almost 98% of the asking price. Couple that with the fact that sold prices have increased more than 4% over the past year, and it looks like we might have a very strong Sellers market.
What is a home buyer to do?
Because there is lower inventory, and homes are selling at a price that is closer to what is being asked, and more people are being forced out of bigger communities to come to Bakersfield, it looks as though the price increase will continue. If you are looking to buy a home or are a first time buyer, it might be a good time to buy a house in Bakersfield during the fourth quarter of the year. Generally, this is where you will see house prices start to go down a little and could potentially provide you with a great deal when buying your home in Bakersfield.
If you have any questions, please feel free to reach out to me and I can always give my advice.
Until Next Time,
Sanjeev (Sunny) Advani
Office Lic 02012941