Southern California Housing Market 2024: Trends and Forecast – Norada Real Estate Investments

As the spring homebuying season kicks off, the real estate market in Southern California is showing promising signs of growth and resilience. According to the latest report from the California Association of Realtors (C.A.R.), existing, single-family home sales in the state April totaled 275,540 on a seasonally adjusted annualized rate. This marks a 3.0 percent increase from March and a 4.4 percent increase from April 2023.

Record-Breaking Median Home Prices

One of the most notable highlights of the report is the all-time high median home price in California, reaching $904,210 in April. This reflects a 5.8 percent increase from March and an impressive 11.4 percent surge from April 2023. Such substantial growth underscores the robust demand for housing in the region.

Regional Trends – Southern California

Delving deeper into regional trends, the data reveals encouraging figures across major areas. Unadjusted raw sales for all major regions in Southern California showed advancements in April, both month-over-month and year-over-year. The Central Coast region led the pack with a remarkable 26.7 percent surge from the previous year. The San Francisco Bay Area and the Central Valley also witnessed double-digit gains, indicating a widespread upward trajectory in the market.

While the Far North and Southern California regions recorded more modest sales gains, with 9.4 percent and 8.7 percent increases respectively, the overall sentiment remains optimistic.

Median Sold Prices in Southern California Counties

Examining the median sold prices of existing single-family homes across various counties in April 2024, several key trends emerge:

• Imperial County: Median price surged to $377,500, marking an 8.2 percent increase from March and a 11.7 percent increase from April 2023.
• Los Angeles County: The median sold price rose to $825,970, reflecting a 2.6 percent increase from March and a 11.8 percent increase from April 2023.
• Orange County: Median price reached $1,440,000, up 2.9 percent from March and a significant 17.6 percent surge from April 2023.
• Riverside County: Median price saw a modest increase to $650,000, with a 1.6 percent rise from March and a 5.7 percent increase from April 2023.
• San Bernardino County: Median price climbed to $516,080, reflecting a 3.2 percent increase from March and a 14.7 percent increase from April 2023.
• San Diego County: Median price surged to $1,047,500, up 2.7 percent from March and 12.6 percent from April 2023.
• Ventura County: Median price rose to $940,000, showing a 2.4 percent increase from March and a 6.2 percent increase from April 2023.

These figures depict a market characterized by strong demand and appreciating home values, which bode well for both sellers and buyers alike.

Year-to-Date Trends

Year-to-date statewide home sales saw a 1.6 percent increase, indicating sustained momentum in the market. This upward trend reflects ongoing consumer confidence and a healthy appetite for real estate investment. The April home sales and price report for Southern California paints a picture of a dynamic and resilient real estate market.

With record-breaking median home prices and encouraging sales figures across regions, the outlook for the spring season is indeed promising. As buyers and sellers navigate the intricacies of the market, they can find opportunities for growth and success in the midst of this thriving real estate landscape.

Southern California Housing Market Forecast: Will it Crash?

The forecast for the Southern California Housing Market for the year 2024 suggests a dynamic real estate landscape shaped by various factors. Rising interest rates will continue to influence the market, impacting both buyers and sellers. However, opportunities for growth and stability exist, with county-level variations providing unique market dynamics.

• Interest Rates and Market Behavior: The prevailing trend of rising interest rates will remain a central driver of the housing market. Buyers are expected to be more selective, while sellers may need to adapt to changing conditions. The cost of borrowing will play a pivotal role in shaping sales volume and affordability.
• County-Level Variations: Southern California’s housing market is a diverse landscape, with county-specific dynamics. Price growth is anticipated, but the pace and magnitude will differ across regions. Buyers and sellers need to be aware of these variations and adjust their strategies accordingly.
• Adaptation and Resilience: As we look ahead to 2024-2025, the key to success in the Southern California housing market lies in adaptation. Buyers, sellers, and real estate professionals should consider creative financing options and effective marketing strategies. Resilience and flexibility will be essential in navigating the evolving market.
• Economic Factors: Economic indicators, such as interest rates and employment rates, play a crucial role in shaping the housing market. The recent increase in interest rates might have initially impacted sales but could stabilize in the coming months. As economic conditions improve, and with the potential moderation of interest rates, buying sentiments may improve, giving the market a boost towards the end of the year.

Considering these trends and factors, the Southern California housing market is expected to maintain a relatively stable trajectory for the rest of 2024. Moderate price increases, steady sales, potential improvement in inventory, and favorable economic conditions are likely to define the market in the upcoming months.

However, it’s essential to remember that real estate markets can be influenced by various unpredictable factors. Hence, regular monitoring of market updates and consulting with real estate professionals for the latest insights is highly recommended for those looking to make informed decisions in the housing market.

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Sacramento Real Estate Market Prices & Forecast

Sources:

• https://www.car.org/
• https://www.noradarealestate.com/blog/housing-market-predictions/