To answer this question, giving context of the current market in Southern California is necessary. Currently, we are seeing high interest rates and ever-increasing prices, which is a big deterrent for potential homebuyers that would usually be interested purchasing due to routine lifestyle changes like an increased salary or children moving out.

High interest rates have made it so homeowners aren’t motivated to buy a new home, and because of this we’re seeing a shortage of listings. But, due to the law of supply and demand, this means that it’s really unlikely we’ll see a crash in 2024. The affluent buyers, the “cream of the crop,” are still actively seeking homes, leading to competition, especially for move-in ready or well maintained properties.

In short, the demand is still higher than the supply, which means that the market is likely to stay stable for the foreseeable future in Southern California. There are proposed bills to motivate long-time homeowners to sell their home, increasing supply and further stimulating the real estate market.