BAKERSFIELD, Calif. (KERO) — As the government shutdown drags on, its impact is being felt in an already sluggish housing market. Local realtors say buyer confidence is dropping, listings are rising, and homes are staying on the market longer than usual.

Kevin Oliver, a California realtor with more than 20 years of experience, says this year has been one of the slowest he’s seen in a long time.

“Our houses are staying on the market longer — we’re not able to turn them as fast — and that directly impacts my bottom line and my ability to support my family,” Oliver said.Oliver points to inflation and rising costs as key factors driving the slowdown.

According to the Crabtree Monthly Housing Report, the Bakersfield market has seen about a 22% decline in buyer demand compared to last year.

In September 2024, there were roughly 802 homes listed for sale across Kern County.

Now, in 2025, that number has grown to more than 1,000 active listings — a sign that homes are sitting unsold for longer periods.

Despite the downturn, Oliver says this moment could present an opportunity for motivated buyers.

“We’re seeing a little bit of an open window for buyers to come in, as long as sellers are pricing correctly and doing what they need to be doing,” he said.

The Crabtree Report also shows that home prices are holding steady.

Houses that sold for about $409,000 in 2024 are now seeing a slight decrease of roughly $9,000, averaging $400,000 in 2025.

But the ongoing government shutdown is creating new challenges for both buyers and sellers. Oliver says several key federal programs — including USDA, FHA, and federal flood insurance — have been delayed or put on hold, making it harder for many buyers to secure loans.

“It affects all the federally backed loans — your USDA, some of the FHA. You also have your federal flood insurance — things like that — that are harder to get while the government’s shut down,” Oliver explained.

These delays, combined with economic uncertainty, are making it difficult for agents to close deals and for buyers to make big financial commitments.

“People are uncertain, and when you have uncertainty, they’re not going to make a big move like buying a home,” Oliver said. “That hesitation slows down the market even more.”

Despite the challenges, housing experts believe the market could begin to stabilize next year, giving buyers and sellers a fresh start once the shutdown ends and confidence returns.

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