California Real Estate Market Trends for 2024

California real estate market trends are looking good for both buyers and sellers as we prepare to close out 2024 and enter 2025. 

According to the California Association of REALTORS (CAR)Mediacenter Newsreleases 2024 News Releases Sept2024sales Aboutus, we’re seeing more movement than in 2023, with single-family home sales volume up 5.1% in September 2024 compared to the previous year. 

This indicates that both buyers and sellers have stronger incentives to move than they did a year ago. More movement means more growth and less stagnation.

Let’s look at the California real estate market trends that are most important for today’s buyers, sellers, and real estate agents.

Increasing Home Prices

The median sold price for California’s single-family homes was $868,150 in September 2024, up 2.9% from $843,500 a year ago. 

The Inland Empire (the high desert of Riverside and San Bernardino Counties, east of Los Angeles) jumped by 5.5%. In fact, all of Southern California performed well, with the region posting a 3.7% year-over-year increase. This is great news for CA homeowners, who have likely seen an increase in equity thanks to this market appreciation. 

The only regions that posted price decreases were the Far North and the San Francisco Bay Area, with losses of 1.4% and 2.6%, respectively. Take note buyers! This could be your opportunity to get a good deal in NorCal.

Decreasing Interest Rates

In September, the Federal Reserve cut interest ratesNational Fed Interest Cuts Career Center for the first time since March 2020. This rate cut reduces the cost of borrowing, making homeownership a bit more affordable in the Golden State. With less of each mortgage payment going toward interest, buyers' budgets can go further.

This is also important for homeowners who’ve felt trapped in their current mortgages because of their crazy-low interest rates. Many owners weren’t ready to sell because they knew their new mortgage would have a much higher interest rate than their current mortgage. While we’re not likely to see sub-5% rates any time soon, this modest cut makes a difference to would-be sellers who were on the fence.

The more homes that are listed for sale, the more options buyers get.  

Growing Population

Way back in 2020 when the pandemic started, we saw a bit of an exodus out of California as people took advantage of remote work to move to states with a lower cost of living. For a while, it seemed like every Californian was moving to TexasWhy Are So Many Californians Moving Texas Blog! 

But 2023 saw a shift back to California. From January 2023 to January 2024, California’s population increased04 30 Californias Population Is Increasing 2024 by 67,000. This means more potential buyer demand in CA’s housing market.

Hot California Markets in 2024

Some metro areas are seeing major price gains this year. As of September 2024, the 10 areas with the fastest-growing median sales priceCalifornia Housing Market StateCalifornia Housing Market State are:

1. Santa Barbara 

2. Sun City

3. Laguna Niguel

4. Carlsbad

5. Laguna Woods

6. Dublin

7. Costa Mesa

8. Torrance

9. Palo Alto

10. Glendale

The 10 most competitive CA housing marketsCalifornia Housing Market StateCalifornia Housing Market State for September 2024 are:

1. Sunnyvale

2. Fremont

3. Santa Clara

4. Berkley

5. Milpitas

6. Dublin

7. Livermore

8. San Leandro

9. Castro Valley

10. San Mateo

California’s Luxury Housing Market Performance

California’s luxury market is facing an uphill battle due to the recent increase in mansion taxes. Mansion taxes are additional transfer taxes on properties that sell over a set dollar amount.

For example, in 2023, Los Angeles implemented Measure ULATrends Los Angeles Mansion Tax Luxury Sales News, which imposed an additional 4% tax on properties sold between $5 million and $10 million, and an additional 5.5% tax on properties sold for more than $10 million. From implementation in April 2023 until January 2024, only 150 single-family homes sold for more than $5 million, a 68% decline from the 474 homes sold in the same 10-month period from the prior year.

Agents looking to sell luxury real estate in CaliforniaHow Sell Luxury Real Estate California Blog need to be aware of changing tax laws around high-value homes and know how to market to high-net-worth buyers. 

The good news is that you can make a lot of money on a single luxury transaction. For example, a 2.5% commission on a $5 million home is $125,000. No wonder agents make so much money in CACalifornia How Much Do Real Estate Agents Make In California Career Center!

Is Now a Good Time to Become a CA Real Estate Agent?

The truth is no matter what the market is doing, buyers and sellers always need agents. But certain market conditions can make things a little easier for agents. With the increasing home prices, lower interest rates, and growing population, now is a great time to get a California real estate licenseCalifornia Get California Real Estate License Career Center.

How to Get a California Real Estate License

You don’t need a college degree to get your CA real estate license. You just need to complete three 45-hour California real estate coursesCalifornia Real Estate LicenseCalifornia Real Estate License, pass a background check, and pass the California state real estate exam.

The California license exam covers fundamentals like:

1. Property Ownership and Land Use Controls and Regulations

2. Laws of Agency and Fiduciary Duties

3. Property Valuation and Financial Analysis

4. Financing

5. Transfer of Property

6. Practice of Real Estate and Disclosures

7. Contracts

The whole licensure process can be completed in as little as 14.5 weeks with Aceable Agent’s online real estate coursesCalifornia Real Estate LicenseCalifornia Real Estate License. Enroll in your courses now, and be ready to launch your new career as a California real estate agent in just a few short months!