Here is why property prices are going to climb in 2025 in Bakersfield

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Expecting a decrease in Bakersfield prices in 2025? Think again.

Even with changing conditions, the Bakersfield market is set to see prices rise due to high demand and limited availability.

Let's explore the reasons why costs in this area are predicted to go up in 2025.

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) In Bakersfield, there are only about 0.33 homes for each person, which is quite limited

Signal strength: strong

The fact that there is around 0.33 home per inhabitant in Bakersfield suggests a limited housing supply relative to the population.

When housing supply is limited, it often leads to increased competition among buyers, which can drive up prices. In Bakersfield, a unique local factor is the recent growth in the agricultural industry, attracting more workers and their families to the area.

This influx of people increases demand for housing, further straining the already limited supply. As a result, the imbalance between supply and demand is likely to push housing prices higher in the coming years.

If the ratio of homes to inhabitants were to increase to around 0.5 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.

Source: USCensus

2) Redfin considers the Bakersfield real estate market to be "very competitive."

Signal strength: strong

The fact that Redfin ranks the Bakersfield real estate market as "very competitive" is a strong indicator that housing prices are likely to rise in 2025.

In Bakersfield, the most competitive properties are single-family homes, particularly in the Southwest area of the city. This area is highly sought after because it offers a suburban feel with access to good schools and amenities, making it attractive to families.

When a market is labeled as "very competitive," it often means that there are more buyers than available homes, which can drive prices up. The demand for single-family homes in this area is a key factor contributing to this competitiveness.

If the market were to become "less competitive," with more homes available than buyers, it could signal a potential stabilization or decrease in housing prices.

Source: Redfin

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3) Homes in Bakersfield have already increased in value by 7.0% since last year, and this trend could persist

Signal strength: strong

The fact that home values in Bakersfield have already changed by 7.0% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is growing, which often leads to higher prices.

Currently, the median home price in Bakersfield is around $388,009, and the median sales price per square foot is about $234. These figures show that the market is already experiencing significant value, which could attract more buyers and investors.

As more people become interested in purchasing homes, the competition can drive prices even higher. If this trend continues, it's reasonable to expect that housing prices will keep rising in the coming years, including 2025.

However, if the market were to see a significant decrease in demand, this signal might not hold, and prices could stabilize or even drop.

Source: Redfin

4) Three major websites predict that home prices in Bakersfield will rise in 2025

Signal strength: strong

There are three major websites forecasting a positive growth for home prices in Bakersfield in 2025, which is a promising signal for potential investors.

Among these forecasts, Realtor is the most optimistic with a prediction of a 6.00% increase in home prices, followed by Redfin at 4%, and Zillow at 1.80%. The significant gap between these forecasts suggests varying levels of confidence in the market's growth potential.

While these predictions are encouraging, it's important to approach them with caution as they are based on projections and not guaranteed outcomes. We will also rely on strong, reliable, and current data to make a well-informed investment decision.

If these forecasts were to predict a negative growth or a decline in home prices, it would signal a potential downturn in the market.

Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts

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5) Bakersfield's is just 5.0%, showing it's a bustling and competitive market

Signal strength: moderate

The vacancy rate in Bakersfield is currently at 5.0%, which is considered very low. This low vacancy rate suggests that there is a high demand for housing in the area, as most properties are occupied.

When demand is high and supply is limited, it often leads to increased competition among potential renters, which can drive up rental prices. As rental prices rise, it becomes more attractive for investors to purchase properties, anticipating that property values will also increase over time.

In Bakersfield, properties that are easily rented are typically well-maintained single-family homes located in desirable neighborhoods such as Seven Oaks. These areas are popular due to their proximity to good schools and amenities, making them appealing to families and professionals.

If the vacancy rate were to rise above 10%, it might indicate an oversupply of housing, which could potentially lead to a decrease in property values.

Sources: NeighborhoodScout, DataUSA, USCensus

6) In Bakersfield, nearly 40% of homes sell for more than their listing price

Signal strength: moderate

In Bakersfield, around 40% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it suggests that competition among buyers is intense.

This competition often leads to increased housing prices as buyers try to outbid each other. If this trend continues, it is likely that home values will rise in the future.

For potential investors, this is a signal that investing in Bakersfield real estate could be profitable. However, if the percentage of sales closing above the listing price were to drop significantly, say to below 20%, it might indicate a cooling market.

Source: Zillow

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7) In the past decade, home prices in Bakersfield have consistently risen by an average of 7.6% each year

Signal strength: minimal

The fact that home prices in Bakersfield have appreciated at an average rate of 7.6% over the last decade is a noteworthy signal for potential investors. This consistent growth suggests a history of demand and price growth, which can indicate favorable conditions for future increases.

While a positive 10-year average appreciation rate is encouraging, it's important to remember that past performance doesn’t guarantee future results. However, it remains a good indicator to consider when evaluating the potential for future price increases.

Investors should be aware that other factors, such as economic conditions and market trends, also play a significant role in determining future prices. Keeping an eye on these elements can help in making informed decisions.

If the appreciation rate were to drop significantly, say below 3% over a similar period, it might suggest a different trend and warrant a more cautious approach.

Source: NeighborhoodScout

So, are prices going to climb in Bakersfield in 2025? Yes, they are!