Realtor.com: Southern California Could Be the Hottest Housing Market of 2024

The California real estate market cooled down during the first half of 2023, due to higher mortgage rates and housing costs. So it might surprise you to know that California is now projected to have some of the hottest housing markets of 2024, in terms of home sales and price growth.

Researchers from Realtor.com published a forecast with what they expect will be the hottest real estate markets of 2024. California metros took five of the top 10 spots in that ranking.

The Oxnard-Thousand Oaks-Ventura metropolitan area was predicted to be the second-hottest real estate market in the country next year, while the San Diego-Carlsbad metro area came in at #4 in the ranking.

Here’s a look at the hottest California housing markets of 2024, based on the latest predictions from industry analysts.

Will California Have the Housing Markets in 2024?

Earlier this month, the real estate research team from Realtor.com published a housing market forecast that ranked the top-10 highest performing housing markets of 2024 (projected).

To accomplish this, the researchers analyzed a variety of indicators relating to real estate market activity in order to create a “combined forecasted growth in home prices and sales.”

Among other things, the group determined that several of the hottest housing markets of 2024 will be located right here in the state of California. In these metro areas, limited inventory and strong demand from buyers is expected to boost home prices and sales during 2024, when compared to the previous year.

To quote the December 2023 Realtor.com report:

Five California metros entered our top 10 list of housing markets but none were Bay Area or Northern Californian metros. The top five Californian metros include Oxnard, San Diego, Riverside, Bakersfield and Los Angeles. These five metros are expected to have sales growth of 13.1%, on average, in 2024, compared to an average decline of 4.1% for other Californian metros in the largest 100 list.

Top 10 Markets of Next Year, According to Realtor.com

The list below shows the top-10 U.S. metro areas that are predicted to have some of the hottest housing markets in 2024. Realtor.com’s analysts expect all of these metro areas to see significant growth in both home prices and sales volume over the next year.

1. Toledo, OH
2. Oxnard-Thousand Oaks-Ventura, CA
3. Rochester, NY
4. San Diego-Chula Vista-Carlsbad, CA
5. Riverside-San Bernardino-Ontario, CA
6. Bakersfield, CA
7. Springfield, MA
8. Worcester, MA-CT
9. Grand Rapids-Kentwood, MI
10. Los Angeles-Long Beach-Anaheim, CA

Southern California Gets a Strong Forecast

To find the hottest (projected) real estate markets of 2024, we have to travel down to Southern California in particular. Major cities across the SoCal region could experience rising home prices and higher sales volume over the coming months, according to this latest forecast.

The following list shows Realtor.com’s projections for the four Southern California housing markets included within their top-10 list shown above (Oxnard, San Diego, Riverside and Los Angeles). These numbers listed beneath each metro represent the forecasted growth in home sales and prices during 2024.

Oxnard-Thousand Oaks-Ventura
Sales: +18.0% | Prices: +3.3%

San Diego-Chula Vista-Carlsbad
Sales: +11.0% | Prices: +5.4%

Riverside-San Bernardino-Ontario
Sales: +13.8% | Prices: +2.0%

Los Angeles-Long Beach-Anaheim
Sales: +9.2% | Prices: +3.5%

These latest predictions suggest that real estate markets located across Southern California will show greater strength in 2024, when compared to the state as a whole. These metros are also expected to outperform the national average, when it comes to market activity and price growth.

Advice for Buyers Entering the Market in 2024

The projections shown above represent an educated guess, rather than an assertion. The truth is, nobody can predict future real estate market trends with complete accuracy. There are too many unknown variables involved, as we’ve seen over the past few years.

Even so, this report seems to send a pretty strong signal to those who are planning to buy a home in Southern California during 2024. When compared to the previous year, SoCal buyers could experience increased competition along with steadily rising prices.

Given this outlook, it might make sense to purchase a home sooner rather than later, to avoid paying a higher price down the road.

Inventory levels are another important consideration for California home buyers. All across the Golden State, local housing markets continue to experience a shortage of supply relative to buyer demand. The San Diego area, in particular, has one of the lowest levels of supply as we head into 2024.

Here are some time-tested strategies for buying a home in a competitive market:

• Expand your search zone. We just talked about the tight inventory conditions affecting housing markets across California. Because of this, home buyers should broaden their search box as much as possible. You’ll have a better chance for success when house hunting across a larger geographical area.
• Work with an agent. An experienced agent who understands the nuances of the California real estate market can greatly improve your chance for success when buying a home in 2024. Try to find an agent who is familiar with the specific neighborhoods or communities you’re interested in.
• Make a smart offer. In a competitive real estate market, buyers often have to go above and beyond to get their offers accepted. The most important thing is to make a strong initial offer based on recent sale prices in the area. You might consider waiving some of your contract contingencies as well, so that your offer has fewer “strings attached.”

Most importantly, be ready to hit the ground running when it comes to your home search. This is especially important for home buyers in the Southern California region, which is expected to have some of the hottest housing markets of 2024.