When Is the Best Time to Buy a House in California in 2024? (2024)

FAQs

When Is the Best Time to Buy a House in California in 2024? ›

With the current trend in the CA housing market, you'll find better deals on your dream home during Q2 2024. As per Fannie Mae, mortgage rates may drop more in Q2 of 2024 due to economic changes, inflation, and central bank policy adjustments.

Housing affordability (the percentage of households that can afford a median-priced home) is expected to remain at 17% next year, the same as in 2023. They predict that California's median home price will rise roughly 6% in 2024, climbing to around $860,300 by year's end.

Existing, single-family home sales are forecast to total 327,100 units in 2024, an increase of 22.9 percent from 2023's projected pace of 266,200. California's median home price is forecast to climb 6.2 percent to $860,300 in 2024, following a projected 1.5 percent decrease to $810,000 in 2023 from 2022's $822,300.

Although there are certain factors that can point to a possible real estate housing market crash happening in our society right now, experts do not currently expect a housing market crash. The general consensus is that housing prices will not be dropping in 2024.

Despite a modest fall during the so-called correction of late summer 2022 and spring 2023, home prices in California are now almost as high as they were during their peak in July 2022, when they reached an average of $769,345.

Experts like Fannie Mae and the Mortgage Bankers Association predict that mortgage rates will decrease in 2024 and continue to drop in 2025 but this likely won't be until the latter half of the year.

"2024 is bound to be a better year for homebuyers, if only because of how terrible 2023 was," says John Graff, CEO at Ashby & Graff Real Estate. Graff anticipates falling interest rates and increasing inventory could result in more opportunities for homebuyers in the months ahead.

Wall Street analysts' consensus estimates predict 3.6% earnings growth and 3.5% revenue growth for S&P 500 companies in the first quarter. Analysts project full-year S&P 500 earnings growth of 11.0% in 2024, but analysts are more optimistic about some market sectors than others.

The market sees a greater than 80% chance of at least five rate cuts from current levels by the end of 2024. Investor optimism about the economic outlook has improved dramatically from a year ago, but there's still a risk that Fed policy tightening could tip the economy into a recession in 2024.

Mortgage rate predictions 2024

The MBA's forecast suggests that 30-year mortgage rates will fall into the 6.4% to 6.7% range throughout the rest of 2024, and Fannie Mae is forecasting the same. NAR believes rates will average 7.1% this quarter and fall to 6.5% by the end of 2024.

Is it a buyers or sellers market in 2024 in the USA? ›

The median home-sale price as of February 2024 was $384,500, up 5.7 percent from one year ago, according to NAR data. The nation had a 2.9-month supply of housing inventory as of February, per NAR, which is low enough to be considered a seller's market.

The annual inflation rate is projected to fall to 2.1% in 2024, just a notch above the Fed's long-run target, according to a recent report from the Congressional Budget Office.

Yun suggested that, after the Fed paused rates in their last two meetings, that the sector may have reached its peak in terms of rates. "The question is when are rates going to come down," he said. Yun anticipated mortgage rates in 2024 could fall to between 6 or 7 percent by the spring.

To decide whether it's worth buying a house in California right now, you need to consider what steps are necessary for the purchase. Prices in some regions are currently lower than they have been since the start of the pandemic, so now could be a good time to enter the market.

New homebuyers now need to make at least more than $106,000 now to comfortably afford a 30-year home mortgage with a 10% down payment, Zillow said. However, a typical U.S. household earns about $81,000 per year, making homeownership a distant dream for many, according to Zillow.

Causes. The imbalance between supply and demand resulted from strong economic growth creating hundreds of thousands of new jobs (which increases demand for housing) and the insufficient construction of new housing units to provide enough supply to meet the demand.

That means the mortgage rates will likely be in the 6% to 7% range for most of the year.” Mortgage Bankers Association (MBA). MBA's baseline forecast is for the 30-year fixed-rate mortgage to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows.

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

Additionally, 2024 is also known as the year of the Green Dragon, symbolizing expansion and strength that will motivate us to reach new heights and attain personal power.