California Housing Market: What’s Happening In 2024? | Across California, CA Patch – Patch

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CALIFORNIA — California is closing the books on another year of soaring housing costs, but some experts see a little relief ahead for buyers in 2024.

According to Redfin, the median sale price for a home in the Golden State was up 8.5 percent for the year through November, while the number of homes sold dipped by nearly 7.5 percent. The impacts were starker for homebuyers in some markets: The firm found the areas with the fastest-growing sale prices were Dublin (+44.2%), Costa Mesa, (+30.4%), Yorba Linda (+26.1%), Pittsburg (+25.1%) and Poway (+24.5%).

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Analysts at Zillow and Redfin see the market marginally improving for homebuyers across the country in 2024, with more homes for sale, giving buyers more options with slightly better affordability. The Bay Area could experience some of the biggest price drops in the U.S., led by a predicted 6.1 percent drop in the San Jose metro area, which includes Palo Alto and San Benito County.

Zillow predicts the San Francisco metro will see a nearly 5 percent dip, with Los Angeles posting a 2.2 percent decrease.

Some realtors are less certain prices will ease, telling the San Francisco Chronicle that the region still has plenty of interest among buyers and predicting lower interest rates will fan competition and continue to drive up prices.

This month, the California Association of Realtors forecast another 6.2 percent rise in median prices over the next year.

“CAR felt optimistic in its 2024 housing market forecast with falling mortgage rates, rising prices, economic expansion, and with demand for homes strong,” the association wrote. “Housing affordability will remain flat. Out of all of it, and despite an outmigration of Californians to low-tax states, the state remains viable and people want to buy homes here.”

Affordability continues to be a challenge in the Golden State and across the country, according to Redfin, which this month reported only 15.5 percent of homes for sale this year were affordable for the typical household. Redfin said that figure was the lowest share on record, down 5 percent from the year before, and a whopping 40 percent from the pre-pandemic boom.

However, Redfin analysts are optimistic that affordability will begin to improve in 2024.

“Many of the factors that made 2023 the least affordable year for homebuying on record are easing,” said Redfin senior economist Elijah de la Campa. “Mortgage rates are under 7 percent for the first time in months, home price growth is slowing as lower rates prompt more people to list their homes, and overall inflation continues to cool. We’ll likely see a jump in home purchases in the new year as buyers take advantage of lower mortgage rates and more listings after the holidays.”

Looking back at 2023, Zillow said Chula Vista, in southern San Diego County, was the platform’s most popular large city of the year. When it comes to search terms, buyers looking around San Francisco most often queried “city views,” while those searching around Los Angeles prioritized properties with central air conditioning and heating systems.

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