Sales of existing single-family homes in California are expected to reach 327,100 units in 2024, a 30 percent increase from this year’s projected 266,200 units sold, according to a forecast released this week.
The median price of a single-family home statewide is expected to reach $860,300 next year, a year-over-year increase of 6.2 percent if that prediction holds true, the California Association of Realtors predicted.
This year’s forecast is a 1.5 percent decrease, to a median price of $810,000.
Housing affordability – the percentage of households that can afford a median-priced home – is expected to be flat in 2024: 17 percent, the same as this year’s projection.
The forecast did not include regional breakdowns.
Two factors – slower economic growth and a lessening of inflation – will help create a more favorable housing market for most prospective buyers, according to the Los Angeles-based trade association.
“Twenty twenty-four will be a better year for the California housing market for both buyers and sellers, as mortgage interest rates are expected to decline next year,” said Jennifer Branchini, association president, in a statement. “First-time buyers who were squeezed out by the highly competitive market in the last couple of years will try to attain their American dream next year, and repeat buyers who have overcome the “lock-in effect” will also return to the market.”