Stay ahead of the game with the latest real estate market trends in California. Find out what’s happening in the competitive California housing market and make informed decisions for buying or selling your property. Don’t miss out on valuable insights – explore the current trends today!
California’s real estate market saw its fair share of ups and downs in 2023. As we look ahead to 2024, a number of key factors and emerging trends will shape housing and commercial real estate in the Golden State.
The Inside Scoop on the 2023 California Real Estate Market
2023 was a year of moderation for California real estate after the frenzy of the previous few years. Home prices climbed at a slower rate while sales cooled off. The market began shifting back towards buyers in many areas. Rising mortgage rates and economic uncertainty tempered demand. At the same time, the state’s persistently low housing supply kept market conditions tight.
Commercial real estate also saw its share of challenges in 2023. Office and retail vacancies remained elevated due to remote work and changing consumer habits. Industrial real estate stayed strong thanks to ongoing demand from e-commerce and logistics companies.
Key Factors to Consider for real estate market trends in California 2024
As we forecast the California real estate market in 2024, key factors to watch include:
- Interest rates: Mortgage rates are expected to remain above 5% in 2024. Higher borrowing costs will impact affordability.
- Economy: California has seen job and income growth slow. A potential recession could further dampen real estate demand.
- Migration trends: More people left California than moved in during 2022. Increased remote work gives people flexibility.
- Housing supply: Inventory remains low statewide. Ongoing challenges with construction costs and zoning restrictions limit new housing development.
- Commercial real estate trends: Remote and hybrid work arrangements will continue influencing office and retail demand. Industrial and multifamily remain desirable asset classes.