California’s housing market continues to struggle in 2024, with home sales failing to meet optimistic projections for a rebound.
Following a steep 24% decline in 2023, the California Association of Realtors (CAR) initially forecasted a 20% increase in sales for this year. However, as the year draws to a close, CAR has revised its forecast down to just a 7% year-over-year increase.
Experts attribute the shortfall primarily to persistently high mortgage rates, which have dampened buyer activity despite easing inflation.
The Federal Reserve’s slower-than-expected pace in lowering interest rates has compounded the challenge, leaving potential buyers hesitant to commit.
The weaker-than-expected recovery underscores the ongoing hurdles in California’s real estate market, where affordability and financing pressures remain significant barriers.