Autumn sees determined sellers open to negotiations, accepting lower prices in September through November.
In winter, housing prices drop and reduced competition helps you find negotiable deals on your dream home.
Residents in Los Gatos face uncertainty over wildfire insurance as major insurers like State Farm plan to non-renew thousands of policies due to rising risks and regulatory constraints. Homeowners are increasingly turning to the pricier California FAIR plan for coverage. The situation stems from Proposition 103, which limits rate increases, creating challenges for insurers amid climate change. Local efforts to mitigate fire risks include community brush-clearing initiatives, with hopes that these proactive measures will attract traditional insurers back to the market.
California is the most populous US state, with 68% of residents living in coastal areas.
California’s cost of living is high, with a median home value of $573,200 and rent of $2,950.
Despite recent stagnation, the market shows potential for growth, especially if interest rates drop.Limited supply and high demand continue to drive prices, reducing the likelihood of a crash.
An affordable housing complex, Union Tower, is under construction in National City at 2312 F Avenue. It will consist of 94 units, including 45 one-bedrooms, 24 two-bedrooms, and 24 three-bedrooms, plus one manager’s unit. The County of San Diego has invested over $314 million in affordable housing since 2017. Veterans will have priority for 24 apartments, with support services provided. The project, located near public transit and shopping, is expected to be completed by spring 2027, with tenant interest applications opening next summer.
Critical shortage exacerbates economic, social issues: Particularly severe for lower-income families in urban areas.Rising costs hinder construction: Inflation, interest rates, and red tape drive up prices, especially for low-income housing.
California's housing market is expected to face ongoing challenges as it transitions into 2024. A persistent inventory shortage and rising mortgage rates have dampened existing home sales, but a strong job market has prevented significant price drops. The California Association of Realtors predicts a 6.2% increase in median home prices to $860,300 in 2024. Mortgage rates are anticipated to decline, potentially reigniting buyer demand. Emerging trends include the rise of iBuyers, shifting demographics, and technological innovations, while regulatory changes may impact the market further.
The supply of houses for sale in California has been consistently lagging behind buyer demand, which is expected to continue in 2024.A dramatic crash seems unlikely due to persistent housing shortages; a market correction and stabilization of prices are possible.
In the Bay Area, finding a home for $500,000 is challenging due to limited inventory and rising prices, which have increased by 6% over the past year. Most options are smaller homes, condos, or fixer-uppers, often found in suburban areas like Vallejo and Benicia. The competitive market is driven by a strong job market and high demand, with interest rates around 7% affecting affordability. Buyers should consider emerging neighborhoods and be prepared for multiple offers, as homes at this price point attract significant interest.
Despite the sales slump, national housing prices remain steady, but slight price drops are seen in California.
California's housing expert predicts home prices will fall in the coming months.