Real Estate Market Update for Tehachapi

After five years of declining prices and sales the Tehachapi Real Estate Market has begun a slight increase in pricing and sales volume. Most buyers are aware that our inventory for the year has been low with the demand for housing on the rise. This makes finding, securing and buying a home a bit more difficult.

Local REALTORS® are up to the challenge in finding homes for their buyers and making transactions work; however  the biggest challenge in a market where values are increasing is the appraisal process. Appraisers are under the most scrutiny they have ever been in years so they are cautious about giving too high of a value to homes. On the other hand,  buyers are adamant they will pay over the appraised value to secure the home they want. Unfortunately buyer’s are often unsuccessful in getting the appraiser to bring in the higher value. It is a catch 22 situation that is continually being solved by the REALTOR®. Each case is different and each solution is unique. Just one of the things REALTORS® do throughout the course of a transaction that makes them so valuable.

Some interesting statistics are that we actually sold 56 fewer homes in 2013 than in 2012, but the average home price jumped from $166,852 in 2012 to $202,850 in 2013. The fact is that the sales of vacant land jumped from 66 sales in 2012 with an average price of $16,900 to 140 sales in 2013 with an average price of $23,580. This increase tells the story of the low inventory. Many of these lots were sold to builders that have begun construction. All of this in answer to the low inventory problem that has plagued REALTORS® for the entire year of 2013.

What will 2014 bring?

Sally Lawrence 2014 President of Tehachapi Area Association of REALTORS® says:

“Experience shows that how the real