https://www.kget.com/news/local-news/bakersfield-real-estate-market-could-feel-effects-of-interest-rate-decrease-and-sales-commission-adjustment/
BAKERSFIELD, Calif. (KGET) - The Crabtree Report on the Bakersfield real estate market is out – and some things have changed: Housing supply is about 10% up and housing demand about 10% down – factors that under normal circumstances would create a buyer’s market.
That’s according to the Crabtree Report, a monthly analysis of the Bakersfield area housing market created by Gary Crabtree, who has been studying local, state and national trends in new and existing home sales since 1962.
A couple of new wild cards are in the mix this time, though, and they add a measure of uncertainty.
First, the Federal Reserve slashed its benchmark interest rate by half a percentage point last week, the first cut since March 2020, meaning the cost of financing a home will drop. That might bring out some new buyers into the market, increasing competition.
And, second, real estate industry rules governing agent commissions have changed – a shift that could ultimately lower costs for consumers, but could also create uncertainty among agents, buyers and sellers who must all adjust to the new system. That might slow the pace of activity.
Who knows?
Realtor Spring Bunting of Coldwell Banker says the industry is still getting a grip on the changes.
“I think we’re going to see, over the next several months, buyers getting used to (these changes),” she said. “Which may take a little more time to move a house with a seller, because there’s going to be a lot more negotiations going on.”
The August Bakersfield market saw a 13% decrease in demand and an 11% increase in supply, with a price decline of $18,000 or negative 4.5% to $387,000, just a 1% increase over the same period last year. Compare that to the state’s median price of $888,740 or 120% higher than Bakersfield, with a 3.5% yearly increase.
Houses are staying on the market in the Bakersfield market for an average of 18 days, which is down a bit, with the state average at 22 days. So it’s not a terrible time to sell, either, if you want to get a faster turnaround.
So, if you’re buying, some factors are in your favor, but check the fine print, because a couple things have changed.
[Collection]kget.com