Local home market holds up during shift to off-peak season | News – Bakersfield, California

Bakersfield, California 2021-11-25 21:00:00 –

Even when shifting to low gear, Bakersfield’s housing market stands out.

According to October data, the median selling price of the city last month fell at a slower pace than California as a whole, as local demand for single-family homes actually increased, contrary to state trends.

A report by appraiser Gary Crabtree points out that Bakersfield’s home purchases have moved into the off-peak season, leading to continued imbalances in local homes and the strength of the new construction market.

Bakersfield’s median last month’s selling price reached $ 340,000, defined as the time when half of the homes sold and half sold out that month. This is 9/10 percent lower than in September.

In the state as a whole, the rate of decline in October was a little steep at 1.3%. What’s more, sales in California declined, but sales in Bakersfield increased slightly.

Crabtree pointed out the differences in market performance between states and regions and interpreted Bakersfield as showing “excellent strength.”

“In my opinion, the basic impetus for this market remains affordable,” he summarized in a report in October: “The median Bakersfield is 57% lower than the median state and is up-to-date. The data show Bakersfield. The market is the third most affordable in the state. “

In Bakersfield, supply shortages have been a driving force for years, but in October listings fell by nearly 14% to 427, down more than 28% from the previous year.

According to a Crabtree report, demand measured by total sales of existing homes was just under half a percent to 571 last month, or about 13 percent less than a year ago.

In particular, Bakersfield’s new home sales fell by more than 12% in October. But at the same time, the median new homes in the city rose by more than 10% to reach $ 420,000. This is basically one-third of the median a year ago.

Crabtree commented on this trend, noting that the National Association of Home Builders recently reported that construction costs have risen recently. He added that the last home sold locally by an entry-level home builder took place in June, and that buyers may have had to move to higher-priced homes. Suggested.

Jordan Levine, vice president and chief economist at the California Real Estate Association, who released October state figures, said in a news release last week that sales are expected to decline.

“Despite the slowdown in sales from last year’s strong fall season, California’s housing market remains stable, above the pre-pandemic levels observed in 2017, 2018 and 2019.” Said Levine. “The slowdown in sales activity suggests that the market is returning to the typical seasonal pattern, and we can expect further market normalization in the coming months. The market is showing signs of cooling in the last few months. However, 2021 has so far continued to exceed last year’s sales levels and is expected to record a rise at the end of the year. “

Local home market holds up during shift to off-peak season | News Source link Local home market holds up during shift to off-peak season | News

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