Hey Everyone, How are you doing today?
Sunny with Synergy Real Estate and Property Management back here with you and we’re gonna go over the housing prices in Bakersfield. Recently has seen an increase in housing prices in Bakersfield, and it’s really been evident to a lot of people who have already been in the market.
For example, we have a lot of owners who purchased last year that are now looking to sell their properties and are getting substantial profits for their properties for only over a year. Not to mention that there’s been cash flow as well, coming off of those properties while they own them. The million-dollar question is “what’s happening? Why is the Bakersfield housing market heating up so significantly?” And so, to me, you have a couple of different factors right now.
How does Covid-19 affect real estate pricing?
So the first big factor is Covid-19. Covid-19 is showing a lot of people that we actually do not need to be in an office space to be efficient for work. People are learning how to work from mobile locations, meaning that office space is not essential to productivity. Therefore, if we can get those people who used to work in those office jobs that are now finding places that they like to beat if they can afford a better life and still make the same income, then why not move to those places so you’re seeing an influx of those people from that location.
Then the next thing and the more important thing, in my opinion, is the inventory. What a lot of people don’t realize is real estate is pretty much a straightforward game. It’s based on a few factors as far as how prices run whether they go up or whether they go down. Right now because inventory is so low, you’re looking at inventory being three to five months ideally is going to be where we’re at, for a balanced market anything over five months is going to be a buyers market anything under three months is going to be a seller’s market.
What we’re looking for?
So basically what we’re looking for right now we want to see around three to five months of inventory. As of a few weeks ago we actually have an inventory of less than one month left on the market for at least residential single-family property. So that definitely takes into account those people who are trying to move here. Those people who are trying to move up are not receiving the inventory, at least on the resale side that they had planned for and therefore the prices start going up at that point.
Something to take a look at while you’re investing throughout many different cities in many different countries. Obviously, Covid taking effect right now and you’re seeing a lot of people not only moving from the primary areas of California to the secondary or tertiary areas of California, but you’re also seeing those people moving from primary areas that may not be going to secondary or tertiary but they are moving more inland away from the coasts and things like that.
If you have any questions please feel free to reach out to us we’re always here to help residential, commercial investment. We do brokerage property management, and we’d be happy to help you with any of your real estate needs.
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Thank you. Take care.
Sanjeev (Sunny) Advani
Office Lic 02012941