Hottest housing market for 2024

In 2024, the real estate market presents challenges and opportunities. Low inventory levels maintain sellers' dominance, discouraging potential buyers despite a slight decrease in mortgage rates from their peak. There was an increase of 17.3% in the median sale price of existing homes in Orange County last month, reaching $1.1M. Prices per square foot in Orange County have increased by 9.6% since last year, reaching $618. There is still a relatively high mortgage interest rate hovering around 6.62%, but it is significantly lower than last year's rate of close to 8%, which adversely affected affordability. Experts predict that the housing market will continue favoring sellers unless rates decrease further. Home sales softened in 2023, but a potential dip in mortgage rates could rejuvenate the market. Housing inventory remains low, with only a 3.5-month supply, requiring a substantial increase in listings or new construction to address the shortage. Home prices are expected to rise by 3 to 4 percent, and the market continues to favor sellers due to tight inventory. Although the prospect of a housing recession in 2024 is unlikely, the market's complexities suggest challenges for both buyers and sellers. The guidance of experienced local real estate agents is emphasized to navigate the intricate landscape. Despite the hurdles, experts dismiss the possibility of a housing crash in 2024, attributing it to stricter lending standards and ongoing high demand. Prospective buyers may find the market challenging in 2024, but a potential decline in mortgage rates could alter the landscape, making homeowners more inclined to sell and contributing to increased market activity.

Amir Vahdat | Broker Associate – MBA – CIPS
949-682-9090 | amirvahdat@bhhscal.com |DRE#01819847
Berkshire Hathaway HomeServices California Properties
www.ocluxuryproperty.com
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