Making Sense of Market Data: A Local Guide to Real Estate Metrics

If you’ve ever browsed a home listing or read a real estate headline, chances are you’ve seen terms like median price, days on market, or absorption rate. These numbers get thrown around all the time—but what do they actually mean for you as a buyer or seller?

At The McCarty Group, we believe that real estate decisions should be driven by more than just emotion—they should be backed by insight. That’s why we dedicated a full episode of the Kern County Real Estate Review to unpacking the five key stats that help decode the real estate market:

• Median Home Price: This tells you the midpoint of what homes are selling for—not the average. It helps sellers understand current pricing trends and helps buyers set realistic expectations.

• Days on Market (DOM): This shows how quickly homes are going under contract. A low DOM means a fast-moving market; a higher DOM suggests buyers have a bit more leverage—or that pricing strategy needs to be reevaluated.

• List-to-Sale Price Ratio: This measures how close sellers are getting to their asking price. In Bakersfield, homes are currently selling at around 98.5% of list price, meaning sellers are generally seeing strong, but not over-inflated, offers.

• Absorption Rate: This lesser-known but incredibly useful stat reflects how quickly the market is “absorbing” inventory. Right now, Bakersfield’s absorption rate is around 26%—indicating steady demand and a seller-favored market.

• Price Per Square Foot: While this is a helpful benchmark, it shouldn’t be the only factor you use when comparing homes. Condition, upgrades, and lot size all matter just as much—if not more.

Understanding these stats gives you a clearer view of not just what’s happening in the market, but why it’s happening. Whether you're planning to sell, searching for your next home, or just want to stay informed, knowing how to read the numbers puts you in a stronger position to make smart, strategic decisions.

And of course, if you ever want help interpreting what these stats mean for your specific home or neighborhood, our team is just a phone call away, (661) 665-SOLD.