San Diego is predicted to be the fourth-strongest U.S. real estate market in 2024. According to a recent Realtor.com forecast, the sunny Southern California city is set to experience an 11.0% uptick in home sales and a 5.4% rise in median sales prices next year. This report outlines a broader housing market recovery where some regions are projected to quickly bounce back from their previous year's woes.
Despite being hit hard by surging mortgage rates and high home prices, which rattled homebuyers and sellers alike, San Diego's market began to rally later this year. The forecasted rebound is significant, suggesting buyers are starting to find value again in the coastal metro. However, it's important to recognize that the area won't instantly return to peak sales. Instead, they "are still predicted to have historically low sales levels despite large improvement over depressed 2023 numbers," a caveat noted by Realtor.com in their assessment via Times of San Diego.
The broader trend sees a mix of markets progressing into the top rankings. For instance, Toledo, OH, secured the number one spot with projections of a 14% increase in homes sold and an 8.3% jump in median prices. Southern California has another contender in Ventura County, ranking second, while Rochester, NY, took third place. The forecast indicates a shift where once sleepy markets are now grabbing the spotlight, signaling a potential shift in regional housing dynamism.
A real-life testament comes from mortgage broker Julie Aragon, who, in a statement to Realtor.com, said, "The bigger houses, there is still a lot of demand for those." Aragon's observation echoes the projected demand, suggesting some buyers are trading Los Angeles living for the comparative spaciousness found in San Diego's housing and its school districts' appeal.
Yet, not all California markets are riding the same wave, as Los Angeles only made it to the 10th position. Once at the pinnacle of high-demand real estate, the Bay Area fell substantially to 66th place, with expectations of declining sales and prices.
