California Association of Realtors Forecast for 2024

Real Estate Agent with Santa Barbara Real Estate 00898298

The real estate market in Santa Barbara continues to remain buoyant even with high interest rates. As the year progresses our unique coastal community continues to attract interest and investment in real estate.

Los Angeles September 20, 2023 – Slower economic growth and cooling inflation will bring down mortgage rates in 2024 and create a more favorable environment to spur home sales next year. CAR sees an increase in existing single-family home sales.  A persistent housing shortage and competitive housing market will continue to put pressure on home prices.

“2024 will be a better year for the California housing market for both buyers and sellers as mortgage rates are expected to decline in 2024,” said CAR President Jennifer Branchini.  A more favorable market environment with lower borrowing costs, coupled with the increase in available homes for sale, will motivate buyers and sellers to re-enter the market. 

First-time buyers who were squeezed out of the market in the last couple of years will try to attain the American Dream next year as repeat buyers who have overcome the “locked-in effect” will also return to the market as mortgage rates begin to trend down.”

The housing supply in 2024 will remain below the norm despite a projected increase in active listings of between 10 to 20 percent, as market conditions and the lending environment improve.

Posted by

Mark Danforth Lomas

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