California Housing Market Forecast 2020
Being that everything started opening again in May, most people would expect there to be a large drop in home sale, and this was definitely the case with around 41.4% drop year over year and an almost 13% year to date. Housing price dropped around 3.7% just in the California housing market, and unsold inventory increased around 34.4% year over year. An interesting statistic that we did not expect was to see the median days on market drop by close to 5.5% and an increase in the sales to list price ratio as well.
Kern County Market Update May 2020
Although in many places around California, it was seen that there were essentially stagnant prices, the median home price in Bakersfield and larger Kern County increased more than 7% year over year to around $270,000. With a small drop in home sales at around 33.5% versus the over 40% drop across CA. Looking at unsold inventory in the Kern County area we see that there is only about 3.5 months of inventory which takes us down closer to a Sellers market than other parts of the US as well.
Bakersfield Market Update May 2020
Looking at the median price of home in Bakersfield we see an 8% increase year over year at $270,000, however, home sales and listing had dropped 35% and 28% respectively in May 2020 as well in Bakersfield. We currently have a 100% sales to list price and a median time on market of around 15 days. This signals that it is now the time to sell your property given the price increases, and lack of inventory coupled with the increased demand of homes due to an influx of out of town Buyers looking to move into Bakersfield, especially with the increase of remote working.
The Post COVID 19 Real Estate Community
With more and more people working from home, meaning they are working from anywhere, we are possibly set to see a resurgence in the suburb communities of the larger cities, and specifically the cheaper suburbs. Bakersfield is perfectly positioned for something like that being that it was ranked one of the most affordable markets in California and the price for most rents and purchases is about half of what people would be paying in other places to purchase homes.
Homes can now start becoming more all-use facilities meaning that the home can be the place that you sleep and raise your family, but also become an office, a gym, a school, a restaurant and so much more. These all use floor plans definitely have more logic built in to them as we move forward into this new era, but is it here to stay?
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