2024 California Housing Trends and Predictions by FlipSplit

Reviewed by: Brandon Brown

Want the inside scoop on California’s housing market in 2024? We’ve got the key trends and predictions you need! Whether you’re selling, buying, or investing, understanding California’s housing market this year could mean the difference between missing out and cashing in. For our loyal subscribers, here are the top trends and predictions you need to know, backed by FlipSplit’s expert insights. Let’s dive into what’s next for California real estate and how you can make the most of it!

The State of the 2024 California Housing Market

California’s housing market remains active but is starting to level out after a few rollercoaster years. Prices are still high in many areas, but the frenzy of 2021-2022 has cooled a bit. Reports from the California Association of Realtors (C.A.R.) reveal that 2024 is a better year for the California housing market. Slower economic growth and cooling inflation are likely to allow the Federal Reserve to ease its policies, causing mortgage interest rates to drop from 6.7% to 6.0 this year. This lower cost of borrowing could encourage more people to buy homes, potentially driving up demand and home prices, making it favorable for buyers and sellers. If you’re a first-time buyer, who has been priced out over the last few years, this year is finally your opportunity to purchase a home and live the American dream! On the seller side, if you were holding off on selling due to high mortgage rates, this year, you may feel more comfortable listing your homes as rates decrease.

Economic Conditions Influencing the Market

In 2024, California’s housing market will be shaped by both positive and challenging economic factors. Mortgage rates are expected to decrease, potentially reaching the mid-5% range by year-end, giving buyers more purchasing power. However, it’s not just about lower rates. The Public Policy Institute of California (PPIC) notes that while job growth will slow down in 2024, key industries such as technology, healthcare, and green energy will continue to drive employment in major cities like San Francisco and Los Angeles. So, if you’re selling, don’t worry! This will keep housing demand strong in those areas. Also, with the Federal Reserve expected to ease monetary policy, there’s a good chance the market will remain active, especially in tech-driven cities like San Francisco and newer hotspots like Riverside and Sacramento. If you’re a buyer, this means it’s a good time to lock in lower rates and take advantage of more favorable market conditions. Meanwhile, if you’re a seller you can expect continued demand in well-located areas, making it easier to sell quickly if priced right.

Housing Inventory and Supply Dynamics

One thing you should know about California’s housing market in 2024: there’s still a shortage of homes for sale. While C.A.R. reports that California’s housing inventory is expected to improve slightly in 2024, with homes for sale increasing by 10–20%, especially in suburban areas, it’s not happening fast enough to meet demand. Because of this, the competitive market will still continue, especially in cities like San Diego and Los Angeles where we’re seeing fewer listings than needed. This means if you’re a buyer, you’ll need to act fast, and sellers will see this as an opportunity to shine and have the upper hand in many regions.

Demographic Shifts and Their Impact

The pandemic may be behind us, but its effects are still being felt in the housing market. More people are moving away from expensive coastal cities and looking for homes in more affordable areas like Sacramento or the Inland Empire. Remote work has also allowed people to live further from major city centers, and this trend is expected to continue. C.A.R. notes that these areas are becoming hotspots due to growing job opportunities and more affordable housing. So, if you’re looking to buy or invest, these “new hotspots” could be a smart place to start!

Price Trends and Predictions

The big question on everyone’s mind: where are prices headed? In 2024, California home prices are expected to stabilize, meaning we won’t see the extreme price hikes of previous years. However, regions like San Diego and Silicon Valley may still see steady price growth due to high demand. C.A.R. projects that overall home prices in California will rise by about 6.2%, but this growth will be more moderate compared to previous years. For buyers, this is good news — you may have more room to negotiate! For sellers, it’s still a strong market, but you may have to price your homes competitively to attract buyers quickly.

Emerging Hotspots in California

Looking for the next big thing in California real estate? Keep an eye on areas like Riverside, Sacramento, and the Inland Empire. These regions are growing fast, thanks to affordable housing, new job opportunities, and improved infrastructure. Sacramento is becoming a popular alternative to pricier coastal cities, while Riverside and the Inland Empire are growing thanks to their proximity to major urban centers and lower costs of living. Additionally, the C.A.R. emphasizes that these regions are benefiting from demographic shifts, with more people moving away from high-cost areas like San Francisco and Los Angeles. Whether you’re buying or investing, these emerging hotspots offer great potential for growth in 2024 and beyond.

The Role of Technology in the Housing Market

Technology is making real estate faster and easier than ever before. In 2024, more buyers will be opting for virtual tours. In 2024, more people will turn to virtual tours, AI-powered home valuations, and online platforms to simplify the home-buying and selling process. If you’re a seller, tools like FlipSplit can help you take advantage of these innovations, providing quick and accurate home evaluations and streamlining the sale process to get you top dollar for your property.

Practical Advice for Buyers, Sellers, and Investors

Based on the trends we’re seeing, here’s what you should keep in mind for 2024:

For Buyers – Be ready to move quickly, especially in high-demand areas, and make sure you’re pre-approved for a mortgage to stay competitive!
For Sellers – It’s a great time to sell, especially in suburban areas and emerging hotspots. Price your home competitively to attract potential buyers.
For Investors – Look for growth areas like the Inland Empire and Sacramento. These regions are seeing rapid growth and could offer solid returns on investment!

Preparing for the 2024 California Housing Market

The California housing market in 2024 is full of opportunities, but navigating it successfully means staying informed! At FlipSplit, we’re here to help you through every step of the way — whether you’re selling, buying, or investing. Want to learn more about how you can capitalize on these trends? Reach out to FlipSplit for expert advice and support, and stay tuned to our updates! We’re here to make your real estate journey easier, faster, and more profitable!

Reviewed by: Brandon Brown

As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.