Avoid These California Cities When Buying a Home in 2024

As the new year begins, predictions for the 2024 housing market are already surfacing. One of the main concerns for buyers planning to purchase real estate in California is finding affordable housing. Which California cities should homebuyers avoid?

According to real estate firm CoreLogic, one city that is likely to see significant price gains in 2024 is Redding in Northern California. With a predicted rise of up to 7.3% in home prices, Redding is poised for growth. However, data from Zillow shows that the current average home value in Redding is $375,981, with a slight decrease of 0.2% over the past year.

San Francisco, known for its exorbitantly expensive real estate, continues to be a challenging market for buyers. In 2023, Redfin listed San Francisco as one of the least affordable housing markets, with homebuyers needing to spend over 80% of their income on monthly housing costs. Although there may be a projected decline of -5.2% in home prices this year, it might not be enough to make San Francisco more accessible to buyers. The city also ranked as one of the most expensive places to live in the U.S. in 2023 and was one of the 10 most expensive cities in the world.

Another California city to avoid is Los Angeles. With a high cost of living and lack of affordable housing, Los Angeles remains a challenging market for many buyers. The average home value in Los Angeles is $918,087, a 3.5% increase over the past year. The tight housing inventory and expensive property taxes contribute to the city’s ranking as one of the most expensive places to own a home in 2024.

San Diego, although showing promise in terms of sales growth and popularity among veteran households using VA loans, also presents challenges for buyers. The average home value in San Diego is currently at $960,202, the highest value among the mentioned cities in this list. With a 7.1% increase in home values over the past year, affordability may be an issue for many potential buyers.

When it comes to buying a home in California in 2024, it is important to consider the affordability and market conditions of different cities. Redding, San Francisco, Los Angeles, and San Diego all come with their own challenges and may not be the best options for those seeking affordable housing.

FAQ Section:
1. Which California cities are predicted to see significant price gains in 2024?
– According to real estate firm CoreLogic, Redding in Northern California is likely to see significant price gains in 2024.

2. What is the current average home value in Redding?
– The current average home value in Redding is $375,981, with a slight decrease of 0.2% over the past year.

3. Why is San Francisco known as a challenging market for buyers?
– San Francisco is known for its exorbitantly expensive real estate. In 2023, it was listed as one of the least affordable housing markets, with homebuyers needing to spend over 80% of their income on monthly housing costs.

4. What is the projected decline in home prices for San Francisco in 2024?
– There may be a projected decline of -5.2% in home prices for San Francisco in 2024. However, this might not be enough to make it more accessible to buyers.

5. What is the average home value in Los Angeles?
– The average home value in Los Angeles is $918,087, with a 3.5% increase over the past year.

6. Why is Los Angeles considered a challenging market for buyers?
– Los Angeles has a high cost of living and a lack of affordable housing, making it a challenging market for many buyers.

7. What is the average home value in San Diego?
– The average home value in San Diego is currently at $960,202, the highest value among the mentioned cities in this list.

8. What challenges do buyers face in San Diego?
– While San Diego shows promise in terms of sales growth and popularity among veteran households using VA loans, affordability may be an issue for many potential buyers due to the high average home value.

Definitions:
1. Real estate firm CoreLogic: A company that provides real estate data and insights for various markets.
2. Zillow: A popular online real estate marketplace that provides information on home values, rental listings, and more.
3. Redfin: A real estate brokerage company that provides online tools for homebuyers and sellers.
4. Exorbitantly expensive: Describes something that is excessively or unreasonably expensive.
5. Affordable housing: Housing that is priced at a level that is considered affordable for people with moderate incomes.

Suggested Related Links:
CoreLogic
Zillow
Redfin
Affordable Housing – U.S. Department of Housing and Urban Development