Helping You Move To A Better Place | Los Angeles To Bakersfield
For over 13 years, Fred Herrman has been helping first-time home buyers and Los Angeles dwellers purchase affordable real estate in Bakersfield’s up and coming housing market. During this time, Fred Herrman Real Estate has gained a reputation for being the Best Real Estate Team in Bakersfield, CA. With in-depth knowledge of the Bakersfield housing market and a commitment to quality service for their clients, it’s no surprise that Fred Herrman and his professional team have become a go-to resource for all things concerning Bakersfield real estate.
Are you a home buyer interested in moving to and investing in Bakersfield real estate? The Fred Herrman Real Estate team has compiled key metrics and data to show the local market’s current state and predict where it’s headed in the next couple years, through 2021. Let’s dive in!
2019 Insight & Statistics For The Bakersfield Real Estate Market
Let’s start off with a snapshot of the current landscape of the Bakersfield market. Here are a few key statistics that can give buyers and sellers an idea about competitive pricing (and affordability) as well as overall market supply.
- Median Home Price: $282,000
- Number Of Listed Homes: 1,653
- Condo Listings: 73
- Foreclosures: 16
Bakersfield Real Estate Market Forecast 2019-2021
According to the House Price Index (HPI), Bakersfield home prices will see a gradual, steady increase through the rest of 2019 until 2021. In 2018 alone, home prices grew by 6.4% and have been back on the rise since 2012.
This increase in home prices will translate into projected growth in home values for the years to come. For home buyers, this means it’s the optimal time to invest in Bakersfield real estate, as prices are still affordable and your house’s value is sure to appreciate in value as the housing market gains more momentum.
Bakersfield Home for Sale
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Bakersfield Real Estate Market Trends
With current market trends in mind, it’s important to note that Bakersfield is a very hot housing market right now for both buyers and sellers. Here are some more current 2019 statistics that illustrate the growing supply and demand for Bakersfield real estate:
- Median Home Value: $243,600
- Median Listing Price: $278,450
- Median Sale Price: $247,200
- One-Year Forecast: 2.9% Increase
- 2019 Home Value Growth: 5.0%
- Median List Price Per Square Foot: $149
- Median Rental Price: $1,499
Foreclosures & Mortgage Delinquency In Bakersfield, CA
At Fred Herrman Real Estate, we assist clients with purchasing an assortment of property types, including but not limited to: condominiums, land, and foreclosures. For potential homebuyers in the Bakersfield area, it’s important to keep in mind that foreclosures and mortgage delinquencies will play an important role within the overall housing market.
Currently, 1.7 homes out of every 10,000 are foreclosed on in the city of Bakersfield. This is lower than the Kern County average but also higher than the national rate, which is 1.2 per every 10,000 homes.
Mortgage delinquency is the beginning stage of the foreclosure process when homeowners miss a monthly payment. In Bakersfield, delinquent mortgages are calculated at 1.5% of owned homes, which is higher than the national average at 1.1%. Currently, 11.8% of Bakersfield homeowners struggle with their mortgages, meaning they owe more than their home is worth.
Bakersfield Rental Market Trends
If you’re a real estate investor or property owner looking to rent or lease a space, there is plenty of opportunities to grow your portfolio in Bakersfield. With a booming student population and rental rates steadily increasing since 2016, the rental market will continue to emerge and grow through 2019 and beyond. Here are some helpful statistics regarding Bakersfield’s rental market:
- Average Rent:$998/month
- Average Rental Size: 879 sq. feet
- $501-$700: 9%
- $701-$1,000: 50%
- $1,001-$1,500: 38%
- $1,501-2,000: 2%
Bakersfield Single Family & Multi-Family Housing Market
Throughout Bakersfield, the markets for single-family and multi-family homes remains strong due to affordable prices. According to the California Association of Realtors, 1 in 4 California residents can afford to purchase a home throughout the state, while 1 in 2 Bakersfield residents can afford to purchase a home within their city. Let’s have a closer look at real estate trends for both single-family and multi-family homes in Bakersfield.
Bakersfield Single Family Homes: In 2019 alone, the median closing price for single-family homes increased by 4.7 percent, which is higher than the national forecast at 3.1 percent. Real estate experts predict that single-family homes in Bakersfield will continue to increase in price through the rest of the year up to 7 or 8 percent. However, pricing is a key factor throughout the market. Single-family homes priced above $300,000 tend to stay on the market longer.
Bakersfield Multi-Family Homes: Due to Bakersfield’s strong and growing economy, multi-family properties have been increasing in value at a much higher rate than single-family homes. The growth of per-unit multi-family properties, such as apartment buildings and complexes, has been calculated at 17.8 percent for 2019. With multi-family properties in such high demand, vacancy rates are at a record low rate of 2 percent.
Best Neighborhoods In Bakersfield For Real Estate
Here, we’ve included some of the most popular Bakersfield neighborhoods for potential home buyers along with their median home values.
- Sagepointe: $209,100
- Riviera-Westchester: $205,100
- Kern City: $180,600
- Park Stockdale: $151,600
- Benton Park: $147,800
- Oleander Sunset: $141,100
- Casa Loma: $115,400
- Southgate: $114,300
- Lakeview: $98,100
Why Invest In The Bakersfield Housing Market?
Are you still wondering if it’s worth it to invest in a Bakersfield home or property? Here are some of the reasons that Bakersfield real estate is currently on the map for California home buyers and investors.
Affordability: Currently, the cost of living in Bakersfield is 28 percent lower than Los Angeles and 45 percent lower than San Francisco. Paired with affordable housing prices, Bakersfield presents more opportunities for Millennial buyers, families, and investors alike.
Profitability: Similarly, because of the high demand within the Bakersfield rental market, properties in this area are more profitable for owners and investors. Currently, 44 percent of Bakersfield residents rent out investment properties.
Solid Economic Growth: Although not nearly as large as Los Angeles or booming as Silicon Valley, Bakersfield boasts a strong, growing economy as the top producing county for oil in the United States and a major agricultural hub throughout the state and nation overall.
Do you have any additional questions concerning Bakersfield real estate market trends for 2019 and beyond? Don’t hesitate to contact the Fred Herrman Real Estate team for research and analysis when looking for your dream Bakersfield home or property. Call us today at 310.343.3219!