Inventory Explosion in Bakersfield, Prices Down 4.8% in One Month

According to the Bakersfield Californian, the "housing market [is] still running strong" despite reporting a 4.8% drop in median home prices in January and an explosion of inventory since June 2005.

Local prices began leveling off last summer and have dipped slightly in recent months. In January, Bakersfield's median house price was $277,591, a 4.8 percent dip from the month before, according to data from local appraiser Gary Crabtree. "It's too early for us to tell if this is a permanent trend or if this is just a typical winter market," he said. Prices generally drop around 2.5 percent in the winter months, Crabtree said, though Bakersfield's housing boom has kept sales buzzing nonstop the past couple of years.

The number of houses on the market has now climbed to nearly 2,800, up from around 800 in June. Some sellers have slashed their asking prices, while others have started offering buyer incentives. Investors hoping to make a quick turnaround for a big gain are also losing interest. Still, Bakersfield is fortunate, said real estate agent Jon Busby. "It's not going to plummet like maybe other areas may," said Busby, of Bakersfield Premier Realty...

Oh yes, I forgot, Bakersfield is different!