Bakersfield real estate trends

[Gene Hacker]

Gary Crabtree predicted that future demand will rise by 7%.  He also stated that the oil sector is adding jobs.  

BP Fund predicts that home prices will rise 3.3% in 2017.

I have noticed much more strength in single-family homes under 200K, where the higher end of the market has been slower. 

There are a few trends that look favorable for Bakersfield...

Oil....if it holds above 50, it looks like the worst of the pain is behind us.

Water....farmers will have ample surface water for the first time in years.  

Loan limits...It sounds like FHA and conventional will have rising limits this year.

Value...Bakersfield prices are still well below their previous peak.  Most areas of the west are pushing all times high.

I would love to hear what others are seeing or thinking...

[Max Gradowitz]

The economy seems to be on a slow and steady upward climb.  You don't need real estate appreciation to tell you that, you can see the signs elsewhere.

Mortgage rates have been at an all time low to stimulate economic growth and now everyone's talking about how rates are going to be going up. FHA is increasing limits as you mentioned. Locally, oil has been hit hard but other local economies are thriving. Local hard money lenders are now pooling together major capital and creating private lending institutions that are able to offer better terms than I've seen since the pre-crash good ol' days.

Home prices, yeah those are on a steady incline too (at least here in Bakersfield, not sure about the surrounding mountain areas).  Starting off the year in 2012, the average sale price was around $150k.  This year we started off at an average sales price of around $230k.  Most of that upward increase was from 2012 to 2014.  From 2015 to now, it's been a slow and steady increase of 2 or 3 thousand dollars each year added average home sales price, give or take.  The slow and steady increase is a good sign in my opinion.