Bakersfield, CA. Market Update

[Brendan Winans]

Bakersfield, population 377,917 (2019) and growing.

For as long as I’ve been working here (since 2010), Bakersfield has been extremely popular with investors. Whether one is looking to flip, or aspires to build a portfolio of rentals, Bakersfield’s dynamics are ideal for meeting one’s goals. For example, 25% percent of households in Bakersfield, CA. are renting their home (per RENTcafé). With a massive pool of renters constantly churning, demand for rentals has consistantly been high, and continues to squeeze higher. Although values are up significantly from last year (see info. below), Bakersfield remains one of the more affordable cities in California. This has buyers, as well as renters, flocking to Bakersfield in droves. 

Enough chit-chat, let’s look at the data.

Current year-to-date (Jan. 1, 2021 to May 31, 2021) sales are at 2,980, which is up 33% from the same timeframe in 2020.

Price per square foot for the current year to date is sitting at $176, up 15.8% from the same timeframe in 2020.

Note: In May 2021 the price per square foot is at $186, up 21.6% from May 2020.

The average days on market for the current year to date is just 21 days, which is down 36.4% from the same timeframe last year.

The average sold price for the current year to date is $326K which is up a whopping 19% from the same timeframe last year!

At our current burn rate, the remaining months of inventory sits at just 0.6, down a mind-blowing 65.6% from this time last year.

With no end in sight (currently), Bakersfield is expected to see double-digit percentage gains in value over the next year. 

What are you seeing in your area?

-Brendan 

*All reports are published May 2021, based on data available at the end of April 2021, except for the today’s stats. All reports presented are based on data supplied by the Bakersfield MLS. Neither the Association nor its MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

[Peter Eberhardt]

I would be interested to know how much of these stats are inflated from the low interest rates due to COVID, as the same stats are everywhere across the nation.  Do you have any comments on the big 3-5 yr picture if the inflation slows down and interest rates rise back up? Do you see oil, natural gas, and the other industries that make Bakersfield thrive not slowing down any time soon?