The housing market in 2024 is already generating predictions, even though the new year has just begun.
If you’re planning to buy a home in California this year, it’s crucial to consider the cities that offer the most affordable housing options. This becomes even more significant when comparing them to cities where home prices are expected to continue rising. So, which cities should prospective homeowners steer clear of?
Redding
In January 2024, CBS shared important findings from real estate firm CoreLogic that revealed 20 cities in the United States where residential real estate prices are expected to increase. Topping the list of gainers was Redding, a city located in Northern California.
CoreLogic predicts that home prices in Redding could experience a significant increase of up to 7.3% by 2024. According to Zillow data, the current average value of homes in Redding is $375,981, reflecting a slight decrease of 0.2% over the past year.
“Why Florida’s Retirees Are Choosing to Leave and Where They’re Choosing to Go Instead”
San Francisco
San Francisco’s real estate market continues to be notorious for its sky-high prices, with no signs of a significant decline in the near future.
According to a report by Redfin, San Francisco was identified as one of the least affordable housing markets in 2023. The report highlighted that the average San Francisco homebuyer would have to allocate more than 80% of their monthly income towards housing expenses.
San Francisco’s housing market is expected to see a modest decline of -5.2% in home prices this year, according to data from Realtor.com. However, this projected decrease may not be significant enough to significantly impact buyer interest in the city.
San Francisco is ranked sixth in U.S. News’ list of the 25 Most Expensive Places to Live in the U.S. for the years 2023-2024. Additionally, it has secured the 10th spot on the EIU’s Worldwide Cost of Living 2023 report, which ranks the city as one of the 10 most expensive cities in the world.
Los Angeles
Los Angeles, known for its high cost of living and lack of affordable housing, remains one of the most expensive places to live in the U.S.
According to Zillow data, the current average home value in Los Angeles is $918,087, showing a 3.5% increase over the past year. The Zebra, an insurance company, has ranked Los Angeles as the sixth most expensive city to own a home in for 2024. Factors such as a limited housing inventory and high property taxes have been identified as obstacles for potential buyers.
In the Worldwide Cost of Living 2023 report, Los Angeles secured the sixth position.
San Diego
The San Diego 2024 housing forecast offers a range of promising opportunities to keep an eye on.
According to Realtor.com, San Diego ranks in the top five metros in California and is projected to experience an average sales growth of 13.1%. The city has also gained recognition for its high percentage of veteran households utilizing VA loans to buy homes. In fact, San Diego had a 16.5% share of VA loans, which is nearly double the average of the largest 100 markets.
According to Zillow’s data, the average home value in San Diego is a staggering $960,202. This represents a 7.1% increase over the past year, making it the highest value among all the cities mentioned in this list. Unfortunately, this means that for many potential buyers, housing prices in San Diego may simply be out of reach.
Read More:
- Philadelphia Police Investigate Triple Shooting And Homicide (Ongoing Investigation)
- Kansas Governor Vetoes Tax Cuts That She Claims Would Benefit The ‘ultra Rich’
