Skip to content

Is The Housing Market Going to Crash in 2024?

Numerous articles delve into the complex realm of the Housing Market, with many articles ranging from nightmare predictions of an impending crash to false rumors amidst the vast sea of information on the internet. In this world, driven by money hungry realtors eager to facilitate transactions, hiding fact from fiction becomes a difficult task. It’s apparent that amidst the chase of monetary gain, some articles address misleading information to lure in potential clients.

Yet, it’s essential to recognize that the challenges within the housing economy aren’t exclusive to prospective buyers or sellers but are shared by realtors as well. Among this rocky market, let’s explore to uncover the genuine reality behind these claims, and whether there will be market crash in the near future.

The current interest rate in California has surged to 6.4%, a notable increase from its 2021 low of around 2%. This uptick in interest rates has sparked a vibrant real estate market, particularly advantageous for sellers. Properties are fetching exceptional prices and swiftly finding buyers, often within mere weeks. The scarcity of available homes has created a competitive atmosphere, with properties being snatched off the market almost as soon as they’re listed. Many homeowners are capitalizing on these favorable conditions, aiming to upgrade to more desirable neighborhoods within the state or even to relocate to rural areas.

In major California cities, it’s a common trend for locals to migrate to the countryside or even return to their home countries. Notably, Texas has emerged as a popular destination for those departing California, with over 102,000 individuals making the move, as reported by the U.S. Census. However, this mass migration is not without consequences. Texas, too, is experiencing its own housing market challenges, albeit not on the same scale as California. Despite a flurry of new construction projects, the market remains largely dominated by affluent buyers, leaving those reliant solely on income at a disadvantage.

In March 2024, the real estate landscape in Los Angeles County painted a picture of remarkable growth. The median listing home price surged to $995,000, representing a substantial 10.6% increase from the previous year. Additionally, the median listing home price per square foot stood at $644, with the average sold price reaching $875,000. Notably, the median sale-to-list price ratio hovered around 100%, indicating that homes in the county typically sold for close to their asking price, underscoring the robust demand and competitiveness of the market.

The housing market’s future is a puzzle, challenging to unravel with absolute certainty. While analysts can examine various indicators and make educated guesses, achieving a definitive answer remains elusive. However, Redfin CEO Glenn Kelman appears to possess a clear vision of what lies ahead. In a recent interview on CNBC, he emphasized the scarcity of available homes on the market, projecting a mere 4 million people to move this year. Kelman also highlighted a notable 15% increase in new listings on Redfin, a positive development for the platform.

The surge in listings could be attributed to several factors. Economic variables such as GDP growth, stock market performance, inflation, and unemployment rates are all contributing to a complex landscape, potentially setting the stage for a housing market downturn. This sentiment echoes the concerns voiced by renowned investor Warren Buffet. Fast-forwarding to 2024, Berkshire Hathaway’s recent disclosure to the SEC revealed a significant shift in strategy. By December 31, 2023, the conglomerate had divested its substantial stake in D.R. Horton, signaling a decisive move away from the home building sector.

All of these things considered its worrisome to say the least. Seeing many clues in our world that may lead up to a housing market crash is something to look out for. Though we can’t predict the future, so we have to do what we can in the present to make the most of our current situation.

James McCormick

About the Author:

James McCormick

DRE #00804012

I’m a real estate agent with Sunbelt Properties in Long Beach, CA and the nearby area, providing home-buyers and sellers with professional, responsive and attentive real estate services. 

Want an agent who’ll really listen to what you want in a home? Seeking an adept agent proficient in the art of home marketing to ensure a swift and successful sale of your property?

Give me a call! I’m eager to help and would love to talk to you.

Top 10 Unique Airbnb Spots In LA

Los Angeles is full of wacky spots and happenings. Why not be part of the funky scene for a few nigh…

The “Ferris Bueller’s Day Off” House Is a Long Beach Local!

Anyone who lived through the 80s knows the beloved classic Ferris Bueller’s Day Off. The movie is fa…

Bedford Castle
Beautiful $14 Million Dollar Fantasy Castle in Wyoming

Bedford, WY Image Link Indulge in the luxury of royal living with this enchanting castle nestled on …

Is The Housing Market Going to Crash in 2024?

Numerous articles delve into the complex realm of the Housing Market, with many articles ranging fro…

Why You should invest in property in Rancho Cucamonga and Las Vegas

In 2023, an ambitious project underway was unveiled by President Joe Biden, heralding the developmen…

Leave a Reply

Your email address will not be published. Required fields are marked *