Every year, the economists at the California Association of REALTORS (CAR) complete their analysis and projections and release the upcoming year’s housing market forecast. This year, 2023, has been a unique year, in which low inventory and high mortgage rates made the headlines. Regardless of the headlines, KALEO agents have helped home buyers and home sellers accomplish their real estate goals. No matter what market we are in, there will always be people who need to buy and sell.
The Senior Vice President and Chief Economist of CAR, Jordan Levine, stated, “Mortgage rates will trend down throughout 2024, and the average 30-year fixed rate mortgage could reach the mid-5% range by the end of next year…Buyers will have more financial flexibility to purchase homes at higher prices, which could generate increased housing demand and result in more upward pressure on home prices.”*
The California Median Home price is expected to increase by 6.2% up to $860,300. The projected increase in home prices can be attributed to the ongoing low inventory of homes for sale, which has resulted in intensified competition among home buyers.
The overall number of home sales is expected to surge by 22.9% compared to the anticipated pace of 2023.
What do KALEO agents predict?
1. Unforeseen factors may defy conventional forecasts. Every year, the housing market is susceptible to unexpected economic activity, global events, and fluctuations in home buyer demand. Expect the unexpected, rings true.
2. A growing number of homebuyers will enter the market, motivated by a desire to build equity through homeownership, as opposed to renting. Real estate is a long term investment, and a safe way to keep pace with inflation.
3. Trust sales, selling inherited properties, downsizing, and relocation to other states will lead the ranks of reasons that prompt homeowners to sell.
4. It will remain KALEO agents’ privilege and honor to guide and assist their clients in their real estate transactions. The opportunity to provide this service is continually appreciated.
Do you have a housing market prediction? Message a KALEO agent on social media or send them an email! Our agents would love to hear your thoughts!
