Housing experts predict market ‘correction’ in late 2022, early 2023

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BAKERSFIELD, Calif. (KGET) — The monthly Crabtree report released Wednesday showed the Bakersfield housing market made strong progress through November, potentially leading to a much-needed “correction.”

“In my opinion, the market dynamics will produce a “correction” beginning in late 2022 or early
2023,” said Gary Crabtree, SRA, of Affiliated Appraisers, in the report.

With a correcting market, interest rates on 30 year fixed mortgages have increased to 3.07 percent, according to the report.

The report said the median home price in Bakersfield last month was $338,950, which is $2,050 lower than October’s median home price. It is also 16.9 percent higher than November of 2020.

California’s overall median home price declined 2 percent since October to $782,480, with Bakersfield’s median home price 57 percent below that, according to the report.

Bakersfield’s annualized appreciation rate continues to rise with homes appreciating at 16.67 percent, up from 8.61 percent year over year.

“It should be noted that the current supply is the lowest in my history with new listings also declining and with demand high,” Crabtree said.

The current listings were down from 491 to 329 year over year while unsold inventory was down from .80 to .56 year over year. The median new construction price was $420,000, up from $321,000 year over year.

“The increasing price trend should continue until at such time the typical buyers are priced out of the market through increased prices, inflation, increased interest rates and increased government taxation,” Crabtree added

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