The California housing market is notorious for its sky-high prices, but Bakersfield stands out as a beacon of affordability. Let's delve into the current state of the Bakersfield housing market, exploring its trends, strengths, and some things to consider.
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How is the Bakersfield Housing Market Doing Currently?
One of Bakersfield's biggest draws is its affordability. Compared to the national average, Bakersfield boasts a median sale price that's a good 6% lower [Zillow]. In June 2024, the median listing price came in at $415,000, which is significantly lower than the median prices in other major California cities [realtor.com]. This makes Bakersfield an attractive option for first-time homebuyers or those priced out of other parts of the state.
Market on the Rise
The Bakersfield market is experiencing steady growth. Year-over-year, home prices have risen around 3.7% [realtor.com] and 6.1% [Zillow], indicating a positive trajectory. Homes are also selling relatively quickly, going pending in around 11 days on average. This suggests a healthy seller's market, where there's good competition for available properties.
Inventory and Competition
While the market favors sellers, it's not without options for buyers. There's a decent amount of inventory available, with new listings coming onto the market regularly. This gives buyers a chance to find a property that suits their needs without feeling rushed. However, with multiple offers becoming more common, being prepared with a strong financial profile and a qualified realtor is key to securing your dream home.
Considering Bakersfield? Here's What to Know
The Bakersfield housing market offers a unique blend of affordability and growth. If you're considering buying a home in Bakersfield, here are some additional factors to keep in mind:
- Market Specificity: Bakersfield is a large city with diverse neighborhoods. Prices and trends can vary depending on the location. Research specific areas to understand their unique market dynamics.
- Future Growth: Bakersfield's economy is projected to see continued growth in sectors like agriculture, energy, and manufacturing. This could lead to further appreciation in housing prices.
- Lifestyle Considerations: Bakersfield offers a Central Valley lifestyle, with hot summers and mild winters. Consider if this climate aligns with your preferences.
Bakersfield's housing market presents an attractive opportunity, particularly for those seeking affordability in California. With its steady growth and diverse neighborhoods, Bakersfield offers a promising place to put down roots.
Bakersfield Housing Market Predictions
The Bakersfield housing market has been on a steady rise in recent times. Home values have gone up 6.1% over the past year, with homes selling quickly after an average of 11 days on the market [Zillow]. This trend suggests a seller's market, where there is more demand for houses than available inventory.
Let's delve deeper into what this means for Bakersfield's housing market.
Are House Prices Dropping in Bakersfield?
No, there is no indication of house prices dropping in Bakersfield. Data suggests the opposite. The median sale price of Bakersfield homes in April 2024 was $376,167, which is close to the current median list price of $420,000. Additionally, a significant portion of homes (34.6%) are selling above the list price, indicating strong buyer competition [Redfin].
Bakersfield MSA Forecast for June 2024, Next Quarter, and 2025
Zillow predicts continued growth for Bakersfield's housing market. A forecast by Bakersfield MSA shows a projected increase of 0.5% in housing prices by June 30, 2024, with a further increase of 0.6% by August 31, 2024 [Norada Real Estate Investments]. The growth is expected to moderate slightly by May 2025, reaching around 0.3%. While this indicates a steady upward trend, it's important to remember that forecasts can change based on various economic factors.
Will the Bakersfield Housing Market Crash or Boom?
The Bakersfield housing market is unlikely to experience a dramatic boom or crash in the near future. The forecast suggests a stable and measured growth, unlike the boom-and-bust cycles seen in some markets. This stability is likely due to several factors, including:
- Limited inventory: The Bakersfield housing market has a lower inventory of homes compared to demand, which helps keep prices stable.
- Steady job market: Bakersfield has a diverse economy with a strong job market in various sectors, including agriculture, oil production, and healthcare. This economic stability fosters consistent demand for housing.
- Affordable housing: Compared to the national average, Bakersfield offers relatively affordable housing options. This affordability is likely to continue to attract buyers.
Overall, Bakersfield's housing market appears to be in a healthy state with stable growth. While forecasts predict continued growth, it's wise to stay informed about economic factors that can influence the market. Consulting with a local real estate agent can provide valuable insights specific to your area and buying or selling goals.
Should You Invest in the Bakersfield Real Estate Market?
Bakersfield Home Appreciation: A Decade of Above-Average Growth
Over the last ten years, Bakersfield has experienced a noteworthy trend in home appreciation rates, surpassing the national average. According to data from NeighborhoodScout, the cumulative appreciation rate for homes in Bakersfield during this period stands at an impressive 110.25%. This places Bakersfield's real estate market in the top 30% nationwide in terms of overall appreciation.
Breaking down the figures, Bakersfield has seen an annual average house appreciation rate of 7.71% over the past decade. This consistent and above-average growth reflects the city's robust real estate market, making it an attractive destination for homeowners and investors alike.
Population Growth and Trends
Bakersfield, with its strategic location in California's Central Valley, has experienced consistent population growth over the years. The city's population trends indicate a steady increase, which is a positive sign for real estate investors seeking areas with a potential demand for housing.
- Population Dynamics: The city's diverse population contributes to a dynamic real estate market, catering to various housing preferences.
- Migration Patterns: Analyzing migration patterns reveals a consistent influx of residents, creating a stable demand for housing options.
Economy and Jobs
The economic landscape of Bakersfield is a crucial factor for real estate investors. Understanding the city's economy and job market is pivotal for making informed investment decisions.
- Job Opportunities: Bakersfield's economy is anchored in industries like agriculture, oil, and manufacturing, providing a diverse range of job opportunities.
- Employment Stability: The stability of key industries contributes to a resilient job market, fostering economic stability that positively impacts the real estate sector.
Livability and Other Factors
Livability is a key consideration for both residents and investors. Factors such as amenities, education, and safety contribute to the overall appeal of the Bakersfield real estate market.
- Amenities: Bakersfield boasts a range of amenities, including parks, cultural attractions, and recreational facilities, enhancing the overall quality of life for residents.
- Educational Institutions: The presence of reputable educational institutions is a crucial factor, attracting families and students, positively influencing the demand for housing.
- Safety Measures: A focus on safety and community well-being adds to the city's appeal, making it an attractive destination for potential real estate investors.
- Affordability: The cost of living in Bakersfield is significantly lower than the California average, attracting businesses and residents alike.
Rental Property Market Size and Growth
For investors interested in rental properties, analyzing the market size and growth potential is essential to maximize returns on investment. The city's housing landscape is diverse, catering to both homeowners and renters, with 59.27% owning their residences and 40.73% opting for rental accommodations.
- Market Size: Bakersfield's rental property market has shown substantial growth, with a diverse range of rental options catering to various tenant demographics.
- Rental Demand: Factors like job opportunities and population growth contribute to a sustained demand for rental properties, creating a lucrative market for investors.
- Single-family Detached Homes: When it comes to housing types, single-family detached homes dominate the Bakersfield real estate scene, constituting a significant 71.35% of the city's housing units. Other prevalent housing options include large apartment complexes or high-rise apartments (13.40%), duplexes, homes converted to apartments, or other small apartment buildings (9.06%), and a small percentage of row houses and other attached homes (3.39%).
Other Factors Related to Real Estate Investing
Several additional factors play a role in the attractiveness of the Bakersfield real estate market for investors.
- Infrastructure Development: Ongoing and planned infrastructure projects can positively impact property values, making it a promising prospect for long-term investors.
- Market Affordability: Bakersfield's real estate market offers affordability compared to some other California cities, making it an enticing option for investors looking for reasonable entry points.
In summary, the Bakersfield real estate market presents a compelling opportunity for investors. With a growing population, diverse economy, and favorable livability factors, the city offers a robust environment for real estate growth and profitability.
