California Housing Market 2024: Experts Predict Some Relief for Buyers

California’s housing market has been a hot topic throughout 2023, with soaring prices making it increasingly difficult for buyers to find affordable homes. However, experts are predicting a slight reprieve for homebuyers in 2024, with more options becoming available and prices expected to dip in some areas.

According to Redfin, the median sale price for a home in California increased by 8.5 percent in 2023, while the number of homes sold decreased by nearly 7.5 percent. Some markets saw even more dramatic increases, with areas like Dublin, Costa Mesa, and Yorba Linda experiencing significant growth in sale prices.

Analysts at Zillow and Redfin are forecasting a marginal improvement for homebuyers in 2024, with more homes for sale and slightly better affordability. The Bay Area, in particular, could see some of the biggest price drops in the U.S., with San Jose predicted to experience a 6.1 percent decrease in prices.

Despite these predictions, some realtors are less certain that prices will ease, citing strong buyer interest and lower interest rates as factors that could continue to drive up prices. The California Association of Realtors also forecasted a 6.2 percent rise in median prices over the next year, highlighting the continued demand for homes in the state.

Affordability remains a challenge in California, with Redfin reporting that only 15.5 percent of homes for sale in 2023 were affordable for the typical household. However, analysts are optimistic that affordability will begin to improve in 2024, as mortgage rates decrease and more listings become available.

As we look ahead to the new year, it will be interesting to see how the California housing market evolves and whether buyers will finally see some relief from the high prices that have dominated the market in recent years.