What’s Up With Bako Retail?

There’s good news for owners regarding retail space in Bakersfield. Vacancy is down to 6.1%, and no new retail space was added during the most recent quarter. Average rental rates for the entire Bakersfield market are up slightly, ending the quarter at $14.19/sf per year.
There was a net absorption of 44,419sf during the third quarter, better than the second quarter of 2015 but still a bit behind 2014 levels. Against this backdrop are 90,755sf of retail space currently under construction and due to come available over the next several quarters.
Not all segments of the retail market fared the same. While Power Centers enjoyed a 0% vacancy during the third quarter, shopping centers and malls felt the pinch of vacancies just over 9%. Geographically, North and Northeast Bakersfield retail experienced vacancies of 12% and 11.2% respectively, while other submarkets varied between 3.0% (Southeast) and 5.7% (Southwest).
Northwest Bakersfield commanded the highest average lease rate ($18.20/sf per year), while Downtown and Southeast reported the lowest rates in the overall market ($10.40 and $11.88).
For a more detailed report with an emphasis on your property and submarket, contact Dave Long at 661-805-5787 or William Woodbury at 661-529-8792.

Bakersfield Market Updater Summer 2015

Is now a good time to buy? To sell? The answer to both is, ‘it depends.’ Knowing the current state of the real estate market and comparing it to last year could give us a good idea of the trends underway, and help you make a better decision about buying or selling.

Number of Homes for Sale June 2014: 1165
Number of Homes for Sale June 2015: 1494
Percent change: +28%

Number of homes sold in Jun 2014: 513
Number of homes sold in June 2015: 564
Percent change: +10%

Average Price of Homes Sold June 2014: $229,000
Average Price of Homes Sold June 2015: $232,000
Percent change: +1.3%

Average Days on the Market June 2014: 38
Average Days on the Market June 2015: 35
Percent change: 8%

Again, these are averages for the entire city of Bakersfield. Your neighborhood or zip code could have done better or worse. Thinking of selling? Contact us a free estimate of your home’s value. Considering buying? Now is a GREAT time, with plenty of homes to choose from and historically low interest rates.

Again, these numbers reflect CITYWIDE averages for one month’s performance in 2014 and 2015. Your part of the city may have done better or worse than these averages. Call or email me to get the most accurate info for your neighborhood.

Thinking of selling? Call 661-529-8792 or email for a free estimate of your home’s value.

Click here a FREE Market Update by email.

Why “It Depends” Is Probably The Best Answer to Most of Your Buying and Selling Questions

Let’s face it, many Realtors you talk to just want to make a deal. If you’re buying, it’s the perfect time, and prices and incentives will never be better. If you’re selling, there’s no time like the present, better act now before the market slows down again, bla bla bla. It seems like, no matter what the question, the answer given is tailored to move you toward doing something, anything, as long is it means making a deal. Well, consider these answers to some questions YOU may have about the Bakersfield real estate market and what it means to you:

Q. How’s the market these days?
A. It depends. Some parts of Bakersfield are showing emerging strength after a prolonged slowdown. Other parts, not so much. If you’re thinking of buying or selling, consult your Realtor for detailed info about the areas and price ranges you’re most comfortable with. Strong local knowledge based on intensive research of the micro-markets in Bako is critical to making the best decisions.

Q. Why hasn’t the market accelerated as much during this economic recovery like it has in the past?
A. The Great Recession was one of the worst downturns in the economy that most of us have seen during our lifetimes. Many homeowners were forced to bail on their homes and take a giant hit to their equities, and the sting of those times is still present and reflected in the public’s buying behavior today. Is this a bad thing? It depends. Prices have come down so much in recent years that many people who could not afford to buy a home now can. Also, sellers wanting to move up are in the catbird seat, with plenty of homes to choose from at very good prices. It’s bad for those who counted on their home equities to fund their retirement years. Lower prices have put a big dent in their plans. The good news? Prices are starting back up again.

Q. Will my home sell if I list it?
A. It depends. Where is your home located? What’s the price? What have other homes in your neighborhood sold for in the past 3-6 months? What is the condition of your property? Does it show well, or does it need some sprucing up? Are you realistic about all these factors and willing to listen to sound advice from a professional Realtor, appraiser, and the buying public? If so, the answer is an enthusiastic, “probably.” If you’re planning to hold out to get the price you could have sold for in 2006, then sadly, no, your property will not sell. Have a candid conversation with your Realtor about your specific neighborhood and what you can realistically expect should you decide to sell.

Q. I’m considering buying a house, but I’m afraid I missed the boat and prices have already risen. Should I be worried about another “bubble.”
A. It depends. How much are you throwing away in rent right now? If you can get rid of your rental and buy your own home, at about the same payment (considering the tax advantages), then why not? Likely price appreciation, low interest rates and the family stability that comes from owning your own home could make buying now the perfect choice. If you’re the type that lays awake nights planning your fast get-away, continuing to rent may make more sense for your situation. If you DO plan to buy, talk to your Realtor and take advantage of his or her knowledge. It can save you thousands and make all the difference in the long run.

So long for now.
Your Realtor,