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July 31st, 2019 by Marco Santarelli
How is The Bakersfield Real Estate Market 2019?
Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Bakersfield real estate market as a potential investment opportunity, you must read till the end. Bakersfield is among nation’s top housing markets to watch in 2019.
Bakersfield, California sits in the middle of the inland empire, overshadowed by “hotter” coastal cities like Los Angeles, San Diego and San Francisco. Those who live outside of the state may not have even heard of it except as a place their produce passed through. Bakersfield sits at the southern end of the San Joaquin Valley. Bakersfield itself is home to around 400,000 people.
This makes Bakersfield the ninth largest city in California. The Bakersfield metro area is home to nearly 900,000 people. It has seen roughly one percent growth per year since 2010. With year-over-year rise in Bakersfield home prices, it stands in the top 20% nationally for real estate appreciation.
There are a number of reasons to consider investing in the Bakersfield real estate. If you are an investor, Bakersfield has a track record of being one of the best long term real estate investments in the nation. Is Bakersfield going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Bakersfield housing market trends and find out the prospects of investing in the Bakersfield real estate in 2019.
Bakersfield Real Estate Market Forecasts 2019 & 2020
According to Zillow, the Bakersfield real estate market is very hot. The median home value in Bakersfield is $243,600. Bakersfield home values have gone up 5.0% over the past year and Zillow’s Bakersfield real estate market prediction is that the prices will rise 2.9% by June 2020.
The median list price per square foot in Bakersfield is $149, which is higher than the Bakersfield Metro average of $148. The median price of homes currently listed in Bakersfield is $278,450 while the median price of homes that sold is $247,200. The median rent price in Bakersfield is $1,499, which is higher than the Bakersfield Metro median of $1,375.
Here is the Bakersfield real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.9% till June 2020.
Bakersfield Housing Market Forecast 2019 – 2021
The Bakersfield housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Bakersfield housing market trend prediction is 71%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Bakersfield, CA is 71% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Bakersfield, CA Real Estate Forecast.
Bakersfield Real Estate Market Trends
Bakersfield real estate market trends indicate a decrease of $5,000 (-2%) in median home sales and a -1% drop in median rent per month over the past year. The average price per square foot for this same period rose to $146, up from $137. Trulia has 1,445 resale and new homes for sale in Bakersfield, CA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Bakersfield for Apr 11 to Jul 10 was $240,000 based on 1,474 home sales. Average price per square foot for Bakersfield was $146, an increase of 7% compared to the same period last year. The median rent per month for apartments in Bakersfield for Jun 16 to Jul 16 was $1,475.
As per the real estate company named Redfin, the Bakersfield housing market is very competitive. Homes in Bakersfield receive 1 offers on average and sell in around 20 days. The average sale price of a home in Bakersfield was $256K last month, up 6.7% since last year.
The average sale price per square foot in Bakersfield is $148, up 5.7% since last year. Homes typically receive 1 offer.
Bakersfield Housing Market Statistics
There are 1,671 homes for sale in Bakersfield, CA ranging from $10K to $20M on Realtor.com. 190 of which were newly listed within the last week. Additionally, there are 325 Bakersfield rental properties, with a range of $1 to $100,000 per month. As per Realtor.com, in June 2019, the housing market in Bakersfield, CA was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In June 2019, the median list price of homes in Bakersfield, CA was $262.5K, trending up 3.5% year-over-year. The median listing price per square foot was $147. The median sale price was $255.3K. On average, homes in Bakersfield, CA sell after 56 days on the market. The trend for median days on market in Bakersfield, CA has gone up since last month, and slightly down since last year.
The median list price in Bakersfield, CA is $269,500 on Movoto.com. The median list price in Bakersfield was less than 1% change from June to July. Bakersfield’s home resale inventories is 1,229, which increased 1 percent since June 2019. The median list price per square foot in Bakersfield is $146. June 2019 was $146. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.
Bakersfield, CA Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Bakersfield, CA is $240,662, which indicates that home prices in Bakersfield are a little above the national average for all cities and towns in the United States.
Single family detached homes are the single most common housing type in Bakersfield, accounting for 71.00% of the city’s housing units. Three and four bedroom dwellings are mainly found in single family detached homes of Bakersfield.
Other types of housing that are prevalent in Bakersfield include large apartment complexes or high rise apartments ( 12.68%), duplexes, homes converted to apartments or other small apartment buildings ( 11.39%), and a few row houses and other attached homes ( 2.77%).
Currently, there are 817 single family homes for sale in Bakersfield, CA on Zillow. Additionally, there are 154 single family homes for rent in Bakersfield, CA. Under potential listings, there are about 19 Foreclosed and 315 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Bakersfield, CA Foreclosures And Bank Owned Homes 2019
According to Zillow’s data, in Bakersfield 1.7 homes are foreclosed (per 10,000). This is lower than the Bakersfield Metro value of 2.0 and also greater than the national value of 1.2. The percent of delinquent mortgages in Bakersfield is 1.5%, which is higher than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Bakersfield homeowners underwater on their mortgage is 11.8%, which is higher than Bakersfield Metro at 11.7%.
There are currently 694 properties in Bakersfield, CA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 707. In June 2019, the number of properties that received a foreclosure filing in Bakersfield, CA was 9% lower than the previous month and 43% lower than the same time last year.
Home sales for May 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Bakersfield was $0. The median sales price of a foreclosure home in Bakersfield was $0, or 0% higher than non-distressed home sales.
Best Places To Buy Real Estate In Bakersfield, CA
If you are looking to buy real estate in Bakersfield, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Bakersfield real estate and you should be able flip it for a lump sum profit.
When looking to invest in Bakersfield real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Bakersfield investment property should be low. The neighborhoods in Bakersfield must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 102 neighborhoods in Bakersfield. Some of the best neighborhoods in Bakersfield, California are Seven Oaks, Laurelglen and Oildale.
Shiloh Estates has a median listing price of $617.2K, making it the most expensive neighborhood. Lakeview is the most affordable neighborhood, with a median listing price of $119.3K. There are 109 elementary schools, 43 middle schools, 30 high schools and 49 private & charter schools.
Here are the 10 best neighborhoods in Bakersfield to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Bakersfield Real Estate In 2019?
Is it worth buying a house in Bakersfield, CA? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Bakersfield is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Bakersfield housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Bakersfield but we have collected ten evidence based positive things for those who are keen to invest in the Bakersfield real estate in 2019.
Investing in Bakersfield real estate will fetch you good returns in the long term as the home prices in Bakersfield have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Bakersfield real estate market which can help investors who are keen to buy an investment property in this city.
1. How Affordable It Is by Californian Standards
Affordability is relative. The average home in the Bakersfield housing market is 250,000 dollars. That’s about 30K higher than the national average, but it is well below the state average. It is this relatively affordable real estate market that makes Bakersfield real estate investment feasible.
Locals are moving here so they can afford to save for the future or pay off debt while still living in a single family home. This partially explains why the Bakersfield cost of living is 109 while the state average is 168.
For investors, the ability to buy a set of Bakersfield real estate investment properties for the cost of the average home in California is a point in favor of the area.
2. The Opportunity for Deals
The Bakersfield housing market had a foreclosure rate triple that of the national average at the height of the 2007 housing bust. More than one in a hundred homes in the area were in foreclosure at that time. The foreclosure rate in Bakersfield now hovers at around one out of every thousand homes.
There are areas like the 93313 zip code where the foreclosure rate is much higher, though. Furthermore, you periodically find farm owners who want to retire; then you can buy farm land for development.
This gives you the ideal Bakersfield real estate investment opportunity if you want to build a residential subdivision or commercial property.
3. The Demographic Momentum
A housing market may grow because people are moving there, or they may grow because of natural population growth. While Bakersfield is seeing some in-migration, they’re also seeing slow and steady population growth.
That’s despite the state of California on average losing people because policies have depressed wages and made the cost of housing skyrocket. That’s why the Bakersfield area has a median age of roughly 30.
There are many families here that will stay here, increasing demand for Bakersfield real estate investment properties. And the young adults who are already here are likely to stay because of the job market. This will keep the Bakersfield housing market at least growing slowly for the next few years.
4. The Job Market
Bakersfield has an unemployment rate of around five percent. While that’s not great by Californian standards, it is a deal for those in the surrounding area. Bakersfield came in 170 out of more than 250 cities in the state.
People are moving here from across the declining agricultural region to find decent paying jobs. The median wage of more than 56,000 dollars a year is reason enough to come for many.
5. The Large Bakersfield Rental Market
The Bakersfield area has a number of features that guarantee a large rental population. One is a prevailing wage that puts the ownership of a home in the Bakersfield housing market out of reach.
The seasonal agricultural work leaves many others unable to make the commitment of owning a home. And that’s on top of the colleges and universities in the Bakersfield area. Don’t expect the Bakersfield housing market fundamentals in this regard to change.
6. Bakersfield’s Landlord Friendliness
It is unfair that the state’s politics are dominated by San Francisco and Los Angeles. Both of these cities are incredibly tenant-friendly, though that would give any property investor pause. However, the whole state is not like that. For example, a Bakersfield real estate investment property owner will find a much friendlier climate.
Bakersfield doesn’t have rent control laws. Eviction isn’t as easy as a landlord-friendly state, but it is easier than if you were evicting a lease-breaker in Los Angeles.
7. The Long-Term Attractiveness to Residents
Wallethub ranked the Bakersfield housing market similarly on quality of life and affordability. In contrast, many “affordable” housing markets have low rents and property prices because no one wants to live there.
Compare this to San Francisco’s million dollar condos while they have to hose poop off the streets, and the Bakersfield real estate market looks like paradise compared to the alternatives.
8. Market Stability
The Inland Valley saw property values crater ten years ago in response to the Great Recession / housing crisis. The environmentalists nearly cutting off the supply of water to an agricultural area made matters worse. While the regulatory stranglehold hasn’t eased, farmers have shifted crops.
More importantly, the job market is diversifying. The housing market has stabilized, and it isn’t going to experience rapid rises or falls compared to “hot” housing markets.
This is why the Bakersfield real estate market has seen appreciation in line with population growth, not the rapid rise of properties on the coast that could collapse once people decide it isn’t worth living there.
The hottest areas in the Bakersfield real estate market were up 5 percent year over year. That’s nothing compared to the double digit growth in fast growing areas, but you won’t be left holding at the top of the roller coaster, either.
9. The Surprisingly Good Rental Rates
Whether seasonal workers who will never settle down or locals whose seasonal employment precludes home ownership, this has created a strong rental market.
Median rents hovers around 1500 dollars a month for single family homes in the Bakersfield real estate market. When you take apartments into account, the median monthly rent is a little under a thousand dollars a month.
10. The Reasonable Property Tax Rate
The average property tax bill in Kern County is 1.1 percent. That’s a little higher than the 0.8 percent California state average. However, you can buy two to three times as much house in Bakersfield, California as you could in L.A. and four times as many Bakersfield real estate investment properties as you could in San Jose.
The end result is a much lower overall property tax bill on Bakersfield real estate, averaging less than 3000 dollars a year.
Bakersfield Real Estate Investment
Maybe you have done a bit of real estate investing in Bakersfield, CA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Bakersfield real estate investment opportunity would be a key to your success. in If you invest wisely in Bakersfield real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Bakersfield investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Bakersfield, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Bakersfield, CA. Bakersfield is developing and diversifying, maturing beyond the farming hinterland that led it to be written off as a California backwater.
Its stabilized real estate market won’t offer skyrocketing property valuations or equally shocking rental rates, but that makes it a good choice for investors seeking solid, steady returns.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Bakersfield, CA is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Bakersfield real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Fresno, CA. Fresno is sometimes seen as the boring middle child in a famous family. It is overshadowed by Los Angeles, San Francisco and San Jose. Yet it is free of their many problems, too, while remaining solid and stable. That’s why you can’t afford to ignore the Fresno area.
The median rent in the Fresno area is 1600 dollars a month, though you can rent a single family home in the Fresno area for much more than this. A side benefit of the relatively affordable real estate market is that you’ll pay less in real estate taxes than you would a “hotter” market.
That’s why the theoretically lower property tax rate in LA doesn’t matter, since the average home costs twice as much as one in the Fresno housing market.
Another sizzling market to invest in real estate in 2019 is Honolulu, HI. The Honolulu housing market is dense, profitable and unable to growth except at the margins. This will result in high returns for almost any Honolulu real estate investment property. The possibility of staying for free in a Hawaii condo or bungalow you own is just a bonus.
There is a rising demand for rental units year-over-year. The issue however is that rent prices are too high to be affordable for many renters.
Housing in Honolulu is expensive, and the relatively large number of people working in low-pay retail and tourism jobs results in many who will never be able to afford owning a home or condo.
Roughly sixty percent of Hawaii residents are cost-burdened renters, people who spend more than a third of their income on rent.
Compounding the matter is that they’re competing with several large pools of renters who are almost immune to local economics, driving up rental rates.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Large rental market
Property tax rate
Opportunity for deals
Housing Market Data, Trends & Statistics
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