Bakersfield: The Hidden Gem of California

Independent of the county you move to in California, the median price for an average house with three bedrooms and two baths will vary.

Talking about the median sales price in October 2022, it was $370k in Bakersfield. Compared to other counties in California, $370k is an affordable price for an average home.

The average price for buying a house may look different for different families. They may have to apply for a loan.

Conventional vs. FHA Loan:

The conventional loan has no government entity; hence it is generally 10% down. Usually, veterans have the advantage of this loan.

The government or the bank offers the FHA loan, and the federal housing authority approves it. The interest rate for this loan is 3.5%.

Both the loans are different; we will only compare the conventional loans to have symmetry.

Another option of 15-year fixed conventional loan with a 10% down offers you to pay around $3300 monthly for house payments.

Apart from these, some lenders offer you a 40-year loan which is a long time to pay back but is a good option if you can’t afford the 30-year fixed one.

The average house price in Bakersfield is quite affordable if you go for conventional loans.

San Diego vs. Bakersfield:

The median sales price for a house in San Diego is $860k. With this median price, the average monthly payment for the conventional 30-year fixed loan is more than $6400, which is large compared to Bakersfield’s $2700. You have to pay that amount every month, no matter your income.

Additionally, if you opt for a 15-year fixed loan with a 10% down payment of $860k, you pay more than $7700 monthly.

Tax Rates:

San Diego’s tax rates are higher than Kern County’s. The prices described above are calculated based on the tax rate of Bakersfield. The prices in San Diego might be higher because it’s a high tax bracket area.

In conclusion, San Diego is expensive yet beautiful. Moreover, the crime rates, homelessness, and inflation are the factors faced by both counties.

Sacramento vs. Bakersfield:

In Sacramento, the median sales price for houses is $513k. On average, a monthly 30-year fixed rate for a conventional loan with 10% down is more than $3500.

If comparing the monthly payment rates for both, the 15-year fixed rate with a 10% down payment of Bakersfield is less than the 30-year fixed rate with a 10% down of Sacramento.

Orange County vs. Bakersfield:

Orange County is one of the most expensive in California. The median sales price is $1.16M there. Dividing this payment for the monthly mortgage becomes $8500 with a 30-year fixed rate and a 10% down payment.

These are just numbers and can be varied depending on different family situations. As already mentioned your income, debt, and dependents may change these prices for you in terms of affordability.

San Francisco vs. Bakersfield:

Comparing San Francisco with Bakersfield is simple because it is the most expensive known real estate across California. Looking into numbers, $1.69M is the median sales price in San Francisco.

Paying this huge amount for your first house with even more than two incomes and having children is nearly impossible in this era. Saying that, if you still manage to save money to buy a house in one of the expensive cities, you are doing a great job.

Commute Time:

The plus point of moving to Bakersfield, other than the affordability, is less commute time. Although there is heavy traffic, your daily commute time is less as compared to other counties in California.

So you don’t have to spend many hours traveling while living in Bakersfield, but if you do, it’s only because you are traveling out of the city.

Location:

Bakersfield is located in the center of California. If you want to go to some coastal area for entertainment, Pismo and Morro Bay are just 2 hours away.

Travel time to northern California from Bakersfield is even less; you can go there for a day trip.

Community:

The important thing to look for while thinking about moving somewhere is community. It makes a society with diverse people living in the same place. Bakersfield community is one of the wonderful communities.