Bakersfield

Gap widens between Bakersfield’s home supply, demand | News – Bakersfield, California

Bakersfield, California 2021-06-13 14:55:00 –

Deteriorating imbalances in housing supply and demand have caused prices in local single-family homes to skyrocket again, forcing some traditional buyers to take special steps to defeat full-cash bidders. I will.

According to a new report by local appraiser Gary Crabtree, the median existing home in Bakersfield rose more than 3% in April alone, reaching a record $ 319,950. This is a 17% increase over the previous year.

The data fits into the state-wide pattern of selling too few homes, leading to new concerns about rising prices and affordability of homes and market stability.

Extra miles

Walters & Associates Inc Broker Associate Camille C. Redmond said local home buyers are offering more offers than ever before to be more competitive in the “madness” of newly listed homes. need to do it.

She said there was an increasing need to put in cash to make up for the difference between the value of the property and the winning bid.

“It’s really hard for first-time buyers and veterans,” Redmond said. “Of course, the question of a million dollars is how long it will last.”

April market performance highlights the dramatic expansion of rural and state housing markets during the pandemic. Rents and purchase prices in Kahn, as housing shortages already provide home-working former metropolitan residents with strong and affordable counties compared to coastal areas Is rising.

Investor reaction

Bakersfield realtors report that investors are responding to price trends. They say that some sell real estate they have held for years, often pushing former lessors into the domestic market, while others look for investment opportunities in modest areas.

“(Investors) are back, especially in some areas of low prices,” said Cheriantes, Bakersfield broker at Coldwell Banker Preferred Realtors.

A longtime observer of the local market, Clubtree sees Bakersfield’s relatively affordable price in California as the “basic impetus” behind recent sales efforts.

Historically low interest rates have added fuel, but he points out a significant local difference in Bakersfield’s affordability: more than 48% of urban residents making average household income are in the median of the city. You can afford to buy a home priced at. This is compared to 27 percent of the state as a whole.

Supply and demand

According to a Crabtree report, the current list was 279 in April, down 57% year-on-year. Its supply fell by almost 16 percent from the previous month.

Demand measured in closed sales of existing Bakersfield homes was 658, up 54% year-on-year. In addition, sales of new homes were 140, an increase of approximately 119% over the previous year. The median of this category has risen by about 7% since April 2020.

The California Real Estate Agents Association reported that the median selling price in April reached a record high. This is because housing shortages are increasing across the state due to so-called market intensification.

That month’s sales were at a record high, in seven days, nearly half of the previous year’s record, the highest year-over-year price increase of 65% in April.

Precautions

This was enough to prompt a note of concern from CAR’s Vice President and Chief Economist Jordan Levine.

“Rising home prices threaten already low homeownership levels, making it difficult for those who don’t yet own a home to buy, but also question the sustainability of this market cycle, he said in a news release. I’m throwing. ” ..

“As vaccination rates rise and the state reopens altogether, rising home prices will make more homes for sale to sellers who are likely to postpone bringing homes to market during the pandemic. I hope it makes you feel comfortable listing. Pressure on home prices. “

CAR reported a sharp increase in sales in April in all major parts of the state, including 40% in the Central Valley. Almost all counties also saw month-on-month price increases, all counties saw year-on-year increases and the list declined from April 2020.

The average selling price in Kern County for the month was estimated at 315,000, up less than 2% from March, but up 16% from April 2020.

Gap widens between Bakersfield’s home supply, demand | News Source link Gap widens between Bakersfield’s home supply, demand | News

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