NEWS Contact:

Russell T. Valone II

619-233-3781 x15

FOR IMMEDIATE RELEASE

Kern County’s Increase in Population Drives Home Sales

Kern County, California – As more people migrate to Kern County, especially to the city of Bakersfield, the County has become one of the leading markets in Southern California.

The market is home to 74 new home developments, 65 of which are located in the Bakersfield area, according toResidentialTrends’ quarterly survey.

“Bakersfield experienced a significant rebound in new home sales in the second quarter of 2006, increasing by 20 percent to 1,069 units sold,” said Russell T. Valone II, president of MarketPointe Realty Advisors, the real estate database and consulting organization that publishes ResidentialTrends. “They have seen a 40 percent increase in activity levels from a year ago.”

Much of this growth is attributed to the increase in population, which in the last five years has increased by 50 percent to 21,987 people.

“Numerous households have cashed out of other California regions and moved to Kern County in search of a better quality of life,” Valone said. “By moving to Kern County/Bakersfield, homebuyers can still stay in California, stay close to their family and be able to own the home they want.”

Driven by relative affordability, Kern County saw 4,000 units sold in the last year, a significant jump from 2,300 units a year in 2000.

The increase in units sold is likely due to the average home price, which has remained relatively flat over the past year, lingering at the mid $300s.

“With housing prices focused at the mid $300s, Bakersfield represents the wholesome middle American market, where a single income family can survive,” Valone said.

Yet, while the average price has remained flat over the past year, the price points are a significant jump up from the last several years, where prices hovered in the low $100,000s.

Additionally, Bakersfield has seen a widening gap between new and resale values, which increased by 46 percent in the last five years.

“The sub $250,000 new home is headed for the endangered species list as the primary price ranges between $250,000 and $400,000,” Valone said.

The area has also seen an emergence of discretionary, or higher priced, housing, especially in Northwest Bakersfield, which has seen a marked increase in market activity, Valone said.

“Luxury executive type housing has continued to represent emerging opportunities in the market with homes priced at $400,000 and above,” he said.

In addition to ResidentialTrends’ quarterly surveys of Kern County new home sales reports are published for Ventura, Orange, Greater Los Angeles, Santa Clarita-Antelope Valleys, West Riverside, East Riverside, San Bernardino, Imperial and San Diego Counties.

MarketPointe Realty Advisors provides comprehensive real estate databases and consulting services. The offices are located in San Diego and Orange County, with representation throughout California. Phone San Diego at 619-233-3781, Orange County at 714-528-2554, website is

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