California Real Estate Market: Predictions for 2024

If you are looking to buy or sell property in California in 2024, you need to know the California housing market forecast and make informed decisions. The biggest prediction from California Association of Realtors experts is that due to the slower economic growth and the colling inflation mortgage interest rates will be brought down as well. This will create a more pleasant market environment, favourable both for buyers and sellers of property. Let’s dive deeper into their forecast. 

More Single-family Homes in 2024

One prediction based on data and trends from the previous year says that there will be an increase in existing single-family home sales of 22.0% and they will reach 327,100 units in comparison to 2023’s 266,200 which makes it 22.2% lower compared to last year.

Average Home Price in 2024

The median home price for the California real estate market is expected to rise 6.2% in 2024, making the average price $860,300. There still be some pressure on the home prices this year since there will be a housing shortage. In addition, the competitive housing market will add to the challenges being greater, as well. 

2024: Good Both for Buyers and Sellers

The predictions say that 2024 will be a good year for buying or selling a property because mortgage interest rates are expected to decline as the C.A.R.’s president Jennifer Branchini stated. This means that when the market for buying and selling homes offers better opportunities, the buyers will be able to borrow money with lower interest rates. Also, the availability of more houses to buy will encourage people to start buying and selling again. 

Inflation Will Continue Its Gradual Decline

Inflation is expected to keep declining over the next 18 months and the CPI will register 2.6% in 2024, down from 3.9% in 2023. Because of this, the interest rate on mortgages will also drop a bit. While in 2023 the average interest rate for a 30-year fixed mortgage was 6.7%, in 2024 it is expected to be 6.0%. Even though it's still higher than before the pandemic, it's lower than the average over the last 50 years, which was about 8%.

Demand for California Homes Won’t Fade

Even though California has lost some businesses and residents, there are still lots of people who are migrating, and new businesses appearing. People love California and they are attracted to live and work there. Even though the Federal Reserve is having awesome trouble dealing with inflation, the good news is that the mortgage rates will keep on decreasing as the year goes on. 

Investing in Rental Properties in California in 2024

Investing in rental properties in California in 2024 is still a wise decision despite the economic challenges. With more single-family homes being sold and a steady demand for housing, rental properties can provide a stable source of income. However, exploring the rental market can be complex, especially for those new to property investment. 

That's where property management companies come in. These companies specialize in handling the day-to-day operations of rental properties, such as finding tenants, collecting rent, and maintaining the property. By outsourcing these tasks to professionals, property owners can save time and effort while ensuring their investment remains profitable.

Some Final Words

In summary, if you're thinking about buying or selling property in California in 2024, there are a few things to keep in mind. Experts predict that mortgage rates will go down, which is good news for both buyers and sellers. There are also expected to be more single-family homes available, but prices might still be high due to a shortage of housing.

Even though inflation is causing some problems, people still love living and working in California. So, investing in rental properties in California could be a smart move. However, managing rental properties can be tricky, which is where property management companies come in. They can handle things like finding tenants and taking care of the property, making life easier for property owners.

In short, while there are challenges in the California real estate market, there are also opportunities. Keeping an eye on trends and getting help from professionals can lead to successful investments.