The Promise of Growth: Southern California Real Estate Prices in 2024

In 2024, Southern California's real estate market is expected to grow a lot because of a few important reasons. The beautiful Southern California sunshine, good job opportunities, and diverse culture have always made it a popular place for people to buy homes. Now, the increasing investment from the tech industry and more chances to work from home are making even more people want to live in the land where it’s always sunny. All of these things coming together, along with expected economic growth and not many homes available for sale, are going to make prices for property in Southern California go up in the next year.

According to this California Association of Realtors article:
”The California median home price is forecast to rise 6.2 percent to $860,300 in 2024, following a projected 1.5 percent dip to $810,000 in 2023 from $822,300 in 2022. A persistent housing shortage and a competitive housing market will continue to put upward pressure on home prices next year.”

The median home price in Southern California between November of 2022 and November of 2023 rose 6.2 percent according to the California Association of Realtors.

The latest data from the California Association of Realtors (CAR) provides compelling evidence to suggest that the real estate market in California is position for a significant rise in prices in 2024 and likely for years to follow. This projection is underpinned by two key factors: housing shortages and a constant influx of out-of-state buyers.

One of the primary drivers behind the projected rise in real estate prices is the persistent housing shortages across key regions of California. According to the CAR data, the demand for housing continues to outstrip the available supply, leading to fierce competition among buyers and an upward pressure on prices. With limited inventory and a growing population, the imbalance between supply and demand is expected to fuel price growth in the coming years.

Additionally, the data highlights a consistent influx of out-of-state buyers who are drawn to California by the allure of living the California dream. These buyers, often seeking a change in lifestyle, are attracted to the state's diverse amenities, economic opportunities, and desirable climate. As a result, the demand from out-of-state buyers further intensifies the competition for properties and contributes to the upward trajectory of real estate prices.

Based on current trends showing persistent housing shortages and ongoing interest from out-of-state buyers, it's likely that real estate prices will keep rising in 2024 and beyond.