By outdoor-nature-child.com Can you share your insights on the current state of the real estate market in California, particularly in relation to Bakersfield’s attractiveness compared to other metropolitan areas?
According to the California Association of Realtors, the median price for a single-family home is projected to reach $909,400 by 2025. This marks a notable increase of 4.6% from the 2024 median price of $869,500, further widening the gap compared to the national median, which stands at $412,300. This upward trend in prices shows no signs of slowing down in the coming years.
California, along with Hawaii, Massachusetts, and Washington D.C., consistently ranks among the most expensive real estate markets in the United States. The association predicts that the supply of homes will continue to fall short of demand, especially with anticipated decreases in mortgage rates, which means California prices will likely maintain their competitive edge over other regions.
The state government has evaluated the need for an additional 2.5 million housing units over the next eight years to meet market demand. However, achieving this goal poses considerable challenges. Analysts and real estate agents believe that as demand continues to rise, competition in the housing market will only intensify.
Laurie McCarty, a local realtor, notes that Bakersfield and its surrounding areas are still among the most affordable in California. However, the influx of new residents has pushed the median price of single-family homes in Kern County up by 60% over the past five years.
Many individuals unable to afford homes in Los Angeles or the Bay Area are now settling in Bakersfield. While it’s become increasingly difficult for locals to buy homes, the median price still hovers around $400,000, which is relatively manageable for many. There is a persistent concern about out-of-state buyers driving up prices, but currently, the market remains accessible.
In contrast, within the San Francisco Bay Area, properties priced around $900,000 are now considered an exception, given that the median price has skyrocketed to $1.5 million.
Michael Bellings, another realtor in the Bay Area, observes that the effects of recent interest rate cuts have yet to be felt noticeably in the market. Many buyers are adopting a wait-and-see approach, and the anticipated buyer activity has not materialized. Even though some sellers are offering their homes at prices reflective of five years ago, these amounts still seem high to potential buyers.
A recent survey conducted by the Bay Area News Group and the Silicon Valley Joint Venture shows that 47% of respondents are considering moving, with 96% acknowledging that high housing prices are a serious concern.
Similarly, in the San Diego metropolitan area, the median home price has reached $1.1 million. However, realtor Mike Safiedine mentions that there are still buyers eager to live in the area, which could lead to a noticeable increase in transaction volume and potentially rising prices in the upcoming year.