In the recent past we have seen the rise of COVID-19. This is arguably one of the largest crisis events the whole world has seen in the past 50 years or more. When speaking with real estate investors at this time, we are seeing that many are worried about the current prices and not wanting to enter the market, but many are also waiting for the market to calm down so they can get back in and start purchasing at a higher level than before the crisis as well. Let’s take a look at the Bakersfield housing market numbers to see how everything has been looking:
For Sale in Bakersfield – 2020
We have recently seen the number of For Sale listings in the Bakersfield area increase between April and March almost 9%! The beginning of March was the time we had first started hearing about COVID-19, and now we are seeing that people are wanting to get out at the top of the market, during these trying times.
Sold Real Estate in Bakersfield – 2020
Looking at the month over month again from March to April, we saw that in March there were 83 sold properties, however by the time we had his April we had only seen about 44 properties sold in the same 5 day time period. This shows almost a 50% decrease in sales which shows that real estate Buyers are more likely to wait on their purchases right now due to the crisis and uncertainty. With the uncertainty due to unemployment as well a lot of people are also starting to pull out of their contracts if they are in escrow as well.
Price per Square Foot in Bakersfield – 2020
Even though we have recently seen a decrease in the amount of sales, we have seen that the houses for sale have increased significantly, and we are still seeing the price per square foot increasing. Month over month it has increased from an average of $151/SF to $152/SF. This means that Sellers are still asking more for their homes, even though the sales in the market are declining significantly.
Future of Pricing in Bakersfield
Over the near future, if we are able to get out of this crisis relatively quickly, there could be a good pick up of the inventory on the market at the current prices. Where I think we will have a problem is if this crisis lasts much longer than another few weeks to a month and if people keep getting laid off because then we can see an even larger slow in the price per square foot in the market which will spur new sales at lower prices.
If you are looking for real estate investment property, we have done many deals, and continue to do many deals that return our Clients a net return of 6%, 8% or even double digits on their real estate. If you are interested in real estate investing in Bakersfield, feel free to reach out to Synergy Real Estate and Property Management.
We provide our real estate investing clients a one-stop shop service where you can be sure that you are buying a quality investment property, and having that property managed in order to preserve your initial investment capital.
Until Next Time,
Sanjeev (Sunny) Advani
3400 Panama Lane Ste J
Bakersfield, CA 93313