Embarking on the 2024 outlook for Southern California’s real estate market, we delve into a tapestry of indicators shaping what’s to come. The California Association of Realtors (C.A.R.) forecasts a market rebound as mortgage rates are expected to ebb, setting the stage for a 22.9 percent increase in single-family home sales and a 6.2 percent rise in median home prices to $860,300. This comes after a slight dip in prices in 2023, indicating a robust return in market activity.
The expected decrease in mortgage interest rates, potentially reaching the mid-5% range by year’s end, will afford buyers more financial flexibility. This, paired with a projected 10 to 20 percent increase in active listings, is poised to fuel housing demand, despite the supply remaining below long-term norms.
Inflation’s anticipated gradual decline to 2.6% in 2024, from 3.9% in 2023, further complements the financial landscape, granting prospective buyers and returning sellers renewed confidence to engage with the market. This forecasted deflationary trend aligns with the Federal Reserve’s expected loosening of monetary policy, presenting a more favorable borrowing environment.
Integrating these insights with the potential shift in buyers’ agent commissions, the Southern California real estate market is ripe for innovation and a refreshed approach to real estate transactions, with more negotiable commission structures likely to emerge.
As we navigate these promising developments, whether you’re a first-time homebuyer or looking to sell, there’s no better time to explore your options. Reach out to us for expert guidance and take the first step towards your real estate aspirations in Southern California’s vibrant market.