Santa Clarita Home Predictions: What to Expect in the Housing Market

Table of Contents

Introduction

Santa Clarita realtor Connor with Honor has represented home buyers and sellers since 1998 and is one of the top agents in the SCV. With over 20 years of experience as a licensed residential loan officer, a licensed realtor, and a continuing education teacher, Connor brings a wealth of expertise to the real estate industry. In this blog, we will be discussing the predictions for the Santa Clarita housing market in 2024, as provided by Forbes.

Transparency and honesty are essential values in the real estate industry, and Connor emphasizes these principles in his work. The purpose of this blog is to provide valuable insights and predictions for home buyers and sellers in the Santa Clarita area, ensuring they have the information they need to make informed decisions.

Forbes, a reputable source in the business world, has provided projections and analysis for the housing market in 2024. By combining Forbes’ predictions with Connor’s expertise, this blog aims to give readers a comprehensive understanding of what to expect in the Santa Clarita housing market in the coming year.

Factors Affecting the Housing Market in 2024

In 2024, several factors will have an impact on the housing market in Santa Clarita. These factors include:

1. Impact of Inflation on the Housing Market

Inflation can have a significant impact on the housing market. Rising inflation can lead to higher home prices, making it more difficult for buyers to afford a home. Additionally, inflation can increase construction costs, resulting in higher prices for new homes. It is important for home buyers and sellers to consider the potential effects of inflation on the housing market in 2024.

2. Relationship between Inventory, Affordability, and Interest Rates

The availability of housing inventory, along with affordability and interest rates, can greatly influence the housing market. If there is a shortage of inventory, it can drive up prices and make it harder for buyers to find affordable homes. Additionally, changes in interest rates can impact affordability. Higher interest rates can increase monthly mortgage payments and reduce purchasing power. Therefore, it is essential to consider the relationship between inventory, affordability, and interest rates when predicting the housing market in 2024.

3. Influence of the Federal Reserve’s Rate Hikes and Cuts

The Federal Reserve’s decisions on interest rates can have a significant impact on the housing market. Rate hikes can make borrowing more expensive, potentially reducing demand for homes. Conversely, rate cuts can stimulate demand by making borrowing more affordable. Therefore, it is important to monitor the Federal Reserve’s rate decisions and their potential effects on the housing market in 2024.

4. Effect of the Upcoming Election on the Housing Market

The upcoming election can also influence the housing market in 2024. Elections can bring about policy changes that may affect the housing market, such as changes in tax laws or housing regulations. It is important for home buyers and sellers to stay informed about potential policy changes and their potential impact on the housing market.

5. Potential for a Housing Market Crash in 2024

While it is difficult to predict a housing market crash with certainty, it is important to consider the potential for a market downturn in 2024. Factors such as economic instability, job losses, and overinflated home prices could contribute to a housing market crash. It is crucial for buyers, sellers, and industry professionals to be aware of these risks and to make informed decisions based on market conditions.

Housing Inventory and Sales Projections

Let’s take a closer look at the current state of housing inventory in Santa Clarita and how it is impacting the housing market. As of now, there is a shortage of housing inventory in Santa Clarita, meaning that there are fewer homes available for sale compared to the demand from buyers. This low inventory is driving up home prices, making it more difficult for buyers to find affordable homes in the area.

The impact of low inventory on home prices is significant. With more buyers competing for fewer homes, bidding wars become common, driving up prices. As a result, home prices in Santa Clarita have been increasing steadily. This trend is likely to continue as long as the inventory remains low.

New construction plays a crucial role in the housing market, especially in addressing the shortage of inventory. However, it takes time for new construction to catch up with demand. While there is ongoing construction in Santa Clarita, it may not be enough to meet the growing demand for housing.

Looking ahead to 2024, we can expect an increase in existing home sales. As the housing market continues to evolve, more homeowners may decide to sell their properties, leading to a rise in inventory. Additionally, the potential for a rebound in home sales is high, as buyers who were waiting for the right conditions may enter the market.

However, it is important to note that a rebound in home sales and an increase in inventory may not necessarily lead to a decrease in home prices. Demand is still strong, and other factors like inflation and interest rates can influence the market. Therefore, it is crucial for buyers and sellers to stay informed about the market conditions and work with a knowledgeable realtor like Santa Clarita realtor Connor with Honor to make informed decisions.

Mortgage Market Outlook

The mortgage market plays a crucial role in the overall housing market, and understanding its outlook is essential for homebuyers and sellers in the Santa Clarita area. Here are some key points to consider:

Impact of Mortgage Rates on Homebuying Activity

Mortgage rates have a significant impact on homebuying activity. Lower rates make homeownership more affordable, attracting more buyers to the market. Conversely, higher rates can reduce affordability and lead to a decrease in demand. As we look ahead to 2024, it’s important to monitor changes in mortgage rates and their potential effects on homebuying activity in Santa Clarita.

Recent Trend of Declining Mortgage Rates

In recent weeks, mortgage rates have been declining. While they may fluctuate, the overall trend is towards lower rates. This trend can make homeownership more accessible to buyers by reducing monthly mortgage payments. However, it’s important to note that rates can change, and buyers should stay informed about the current rates when considering purchasing a home.

Projected Increase in Mortgage Origination Volume

The Mortgage Banker Association predicts an increase in mortgage origination volume from 1.6 trillion to 1.9 trillion in 2024. This projection indicates that more homebuyers will be entering the market and seeking mortgage financing. It’s important for mortgage companies to be prepared for this increase in volume and for buyers to understand the impact it may have on the availability of mortgage options.

Potential for Mortgage Demand to Continue Decreasing

Despite the projected increase in mortgage origination volume, there is also the potential for mortgage demand to continue decreasing. Factors such as higher interest rates, affordability challenges, and economic instability can all contribute to a decrease in demand. It’s important for mortgage companies to be aware of these potential challenges and adjust their strategies accordingly.

Challenges Faced by Mortgage Companies

Mortgage companies face various challenges in the current market. These challenges include increased competition, changing regulations, and the need to adapt to evolving customer preferences. Additionally, the potential for a housing market crash in 2024 could pose significant challenges for mortgage companies. It’s important for these companies to stay informed, innovate, and provide exceptional service to meet the needs of homebuyers in Santa Clarita.

In conclusion, the mortgage market outlook for 2024 in Santa Clarita is a mix of opportunities and challenges. While declining mortgage rates and an increase in origination volume may seem positive, the potential for decreasing demand and the challenges faced by mortgage companies should not be ignored. Buyers and sellers should stay informed, work with knowledgeable realtors, and carefully consider their options before making any decisions in the Santa Clarita housing market.

Foreclosure Predictions for 2024

Let’s discuss the state of foreclosure activity and the impact of forbearance programs on foreclosures in 2024. Currently, foreclosure activity is trending up nationally, but it is still only at about 60% of pre-pandemic levels. Foreclosure protections for homeowners in forbearance have recently ended, which may lead to an increase in foreclosures in the coming year.

However, it’s important to note that experts generally do not expect to see a wave of foreclosures in 2024. The likelihood of a rapid drop in home prices due to waning demand is low. Today’s homeowners are in a more secure position compared to those during the 2008 financial crisis, with more equity in their homes.

That being said, the increase in foreclosures may not occur until 2025, when other factors like unemployment come into play. It’s important to distinguish between pre-2022 and post-2022 buyers. Pre-2022 buyers who have significant equity in their homes may choose to sell and avoid foreclosure. However, post-2022 buyers who may be at risk of foreclosure due to financial difficulties could contribute to a wave of foreclosures in 2025.

When considering the potential for a wave of foreclosures, it’s crucial to monitor the overall state of the housing market. Factors such as inventory, affordability, and interest rates play a significant role in the stability of the market. Additionally, keeping an eye on the Federal Reserve’s decisions on interest rates and any potential policy changes due to the upcoming election can provide valuable insights into the future of the housing market.

One should also consider the difference between pre-2022 and post-2022 buyers. Pre-2022 buyers may have more resources and equity to navigate through financial difficulties, while post-2022 buyers may face more challenges in the event of a foreclosure. Understanding these differences can help buyers and sellers make informed decisions.

While it’s difficult to predict the future with certainty, it’s important for homeowners, buyers, and industry professionals to be aware of the potential for an increase in foreclosures in 2024 and the potential for a wave of foreclosures in 2025. Staying informed about market conditions, working with knowledgeable realtors like Santa Clarita realtor Connor with Honor, and considering all factors can help navigate the housing market successfully.

Should You Wait to Buy a Home in 2024?

Buying a home is a personal decision that should be carefully considered based on your individual circumstances. While predictions for the 2024 housing market can provide some insights, it’s important to prioritize your financial position before making a decision.

Being in a solid financial position is crucial when buying a home. Evaluate factors such as your cash flow, affordability, and ability to make a down payment. Use a mortgage calculator to estimate your monthly payment and the cost of your down payment. This will help you determine if you can comfortably afford to move into a home.

Timing the housing market can be challenging and uncertain. While some experts predict a rebound in home sales and an increase in inventory in 2024, there are no guarantees that conditions will significantly improve. It’s essential to remember that the housing market is influenced by various factors such as inflation, interest rates, and economic stability. These factors can be difficult to predict accurately.

Instead of waiting for better conditions, focus on finding a home that meets your current and foreseeable needs. If you come across a house that you like and can afford, it may be a good time to make a purchase. Waiting for the perfect conditions may only prolong your homeownership goals, as home prices tend to keep rising over time.

However, it’s important to approach the decision with realistic expectations. Ensure that you have a solid financial foundation, including minimal consumer debt and sufficient savings. Aim for a mortgage payment that doesn’t exceed 25% of your income. Having these fundamentals in place will help you make an informed decision and avoid potential financial strain.

Ultimately, the decision to buy a home in 2024 should be based on your personal circumstances. Consider your financial position, evaluate the fundamentals of cash flow and affordability, and be aware of the uncertainty surrounding timing the housing market. By evaluating your own circumstances and working with a knowledgeable realtor like Santa Clarita realtor Connor with Honor, you can make the best decision for yourself and your future homeownership goals.

FAQ

Addressing Common Questions and Concerns about Santa Clarita Home Predictions

  • Q: How stable is the Santa Clarita housing market in 2024?
  • A: While the market may experience some fluctuations, experts do not predict a housing market crash in 2024. Homeowners in Santa Clarita are in a more secure position compared to the 2008 financial crisis, with more equity in their homes.

  • Q: When is the best time to buy a home in Santa Clarita?
  • A: The best time to buy a home is when you find a property that meets your family’s needs and you can afford it. Trying to time the market is challenging, as home prices generally continue to rise. Focus on finding a home you like and that fits your financial situation.

  • Q: Will mortgage rates be lower in 2024?
  • A: While mortgage rates have been declining recently, they can fluctuate. It is important to stay informed about current rates when considering purchasing a home. Lower rates make homeownership more affordable, but it’s essential to evaluate your financial position before making a decision.

  • Q: Will there be an increase in foreclosures in 2024?
  • A: Experts do not expect a wave of foreclosures in 2024. Foreclosure activity is currently at about 60% of pre-pandemic levels and is not projected to reach 2019 numbers until mid-2024. However, foreclosures may increase after mid-2024, especially for post-2022 buyers facing financial difficulties.

  • Q: Should I wait until 2024 to buy a home?
  • A: Buying a home is a personal decision based on your financial position and needs. While some experts predict a rebound in home sales and an increase in inventory in 2024, there are no guarantees that conditions will significantly improve. It is important to prioritize your financial stability before making a decision.

For more information and personalized advice, it is recommended to consult with a knowledgeable realtor like Santa Clarita realtor Connor with Honor. They can provide additional resources and guidance tailored to your specific situation.



I’m Connor with Honor, AKA Connor MacIvor. I have lived in CA since 1990, when I came out to be an LAPD Police Officer. Life has a way of beating the heck out of you, as it did me. I am glad for the experiences and still have many more to go. I was able to finally beat the FAT problem I had for my entire pre-teen, teenage, and adult life up until I was 52 years old, back in 2021, when I was able to figure out what worked and how I wanted my journey to operate. 

I sell houses, representing buyers and sellers in Santa Clarita, CA, and the greater Los Angeles Area. I have been a Realtor since 1998 when I started a career in that business. I joined the LAPD as a full-line reserve officer after 17 years of full-time service, staying until 2011 and honorably retiring. 

If you need me, I’m here for you and yours. Thank you for reading what I posted online, and I appreciate you very much for taking your valuable time to do so.