According to C.A.R.'s "2024 California Housing Market Forecast," the baseline scenario predicts that existing single-family home sales will rise by 22.9 percent in 2019 to 327,100 units, from the anticipated 266,200 units in 2023. The 2023 figure is a 22.2 percent decrease from the 342,000 dwellings sold in 2022.

After a projected 1.5 percent decline to $810,000 in 2023 from $822,300 in 2022, the median home price in California is expected to grow 6.2 percent to $860,300 in 2024. The competitive housing market and ongoing housing shortage will keep driving up home prices in the upcoming year.

 

The U.S. gross domestic product is expected to grow by 0.7 percent in 2024, according to C.A.R.'s 2024 estimate, following a projected 1.7 percent increase in 2023. California's unemployment rate will rise to 5.0 percent in 2024 from a projected rate of 4.6 percent in 2023, with the state's nonfarm job growth rate of 0.5 percent in 2024, up from a predicted increase of 1.4 percent in 2023.

Over the next 18 months, inflation will continue to gradually decrease; in 2024, the CPI will be 2.6%, down from 3.9% in 2023. Because of this, the average interest rate on a 30-year fixed mortgage will drop from 6.7% in 2023 to 6.0 % in 2024. The expected average 30-year fixed mortgage interest rate for the upcoming year will be less than the long-term average of roughly 8% over the previous 50 years, even if it will still be higher than the levels seen in the years just before the epidemic.

 

Despite a predicted 10% to 20% rise in active listings, the supply of housing in 2024 will still be below average because of improving lending conditions and market circumstances.

said C.A.R. Senior Vice President and Chief Economist Jordan Levine.

2024 CALIFORNIA HOUSING FORECAST

	2017	2018	2019	2020	2021	2022	2023p	2024f
SFH Resales (000s)	424.9	402.6	398	411.9	444.5	342	266.2	327.1
% Change	1.7%	-5.2%	-1.2%	3.5%	7.9%	-23.1%	-22.2%	22.9%
Median Price ($000s)	$537.9	$569.5	$592.4	$659.4	$786.8	$822.3	$810.0	$860.3
% Change	7.1%	5.9%	4.0%	11.3%	19.3%	4.5%	-1.5%	6.2%
Housing Affordability Index*	29%	28%	31%	32%	26%	19%	17%	17%
30-Yr FRM	4.0%	4.5%	3.9%	3.1%	3.0%	5.3%	6.7%	6.0%

Buyers may be able to afford homes at higher costs because they will have greater financial flexibility, which may lead to a rise in housing demand and home prices.

Is Now a Good Moment to Invest in California Real Estate?

The monthly Consumer Housing Sentiment Index published by C.A.R. shows that, in April 2023, 59% of consumers—up from 55% the previous month—said it was a good time to sell. About 25% of respondents, the same as last year, think now is a good time to buy a house. Given the decline in rent, would it be smart to stay put for a few more years?  Are you going to be looking for a new rental property? View national rent rates by city as well as city-by-city cost of living.

In this year 2024, will home prices in California keep rising?

Many purchasers want to know if house values will go up or down.  Renters want to know if their rent will go down. The combination of little supply, cheap mortgage rates, and great demand will probably drive up the cost of houses and condos.  Both the trend and the return of consumers are here.  California's positive sales statistics are a result of several factors: