The Southern CA Housing Market in 2024
The Southern California housing market in 2024 saw a mix of challenges and opportunities shaped by higher mortgage rates and evolving buyer and seller behaviors.
Home Prices and Sales Activity: The market experienced modest price growth, with median prices rising by about 6-8% year-over-year. For example, Orange County's median home price hovered around $1.1 million, while more affordable areas like San Bernardino saw median prices closer to $500,000. Sales activity increased slightly, aided by declining inflation and the expectation of lower mortgage rates later in the year
Mortgage Rates and Affordability: Higher interest rates (averaging around 6.8% mid-year) reduced buyer purchasing power, leading to less competitive conditions compared to recent years. However, rates began stabilizing, which, combined with a stronger job market, helped maintain buyer confidence
Market Dynamics: Buyers had more inventory to choose from, as active listings rose by 10-20%, reducing bidding wars. Sellers had to price competitively and adjust expectations, with fewer cash buyers and less speculative activity than in past high-growth years
Overall, 2024 marked a period of stabilization for Southern California real estate. Buyers gained more leverage, while sellers still benefited from steady demand. This evolving landscape required strategic pricing and market knowledge for successful transactions
