Sacramento Home Sales Are Expected to Soar in 2024: Real Estate Predictions from the Experts

2023 was a year of challenges, created in a post-pandemic market characterized by inflation, increased interest rates, and heightened uncertainty. But as we turn the chapter to a new year, hope is on the horizon!

Sacramento is poised to stand out among California metro areas in 2024. In fact, experts are predicting double-digit year-over-year sales growth(1), making it a hotspot for real estate activity in the upcoming year. 


One source we turn to for real estate predictions is industry expert, Brian Buffini’s biannual Bold Predictions. We recently attended his webinar and have outlined our biggest takeaways below. 


Mortgage Interest Rate Hikes Lose Their Jolt

Buffini's recent market update sheds light on the evolving dynamics, especially regarding mortgage interest rates. 


Many homeowners and potential buyers got used to lower interest rates (2.6-3%) which were a hallmark of 2020-2022, but Buffini points out—that era of remarkably low rates, a result of pandemic-induced recession responses—has died out. Currently, 90% of homeowners enjoy rates below 6%, but only a quarter of homeowners have rates below 3%.

The Prediction: Buffini predicts a shift, foreseeing formal rate cuts around July of next year, saying that the Federal Reserve will most likely halt rate hikes as inflation trends downward. He anticipates finishing 2024 with rates below 6%. 


This will spark a mid-year surge in real estate activity. The momentum is expected to carry into the third and fourth quarters, culminating in a robust finish with approximately 4.6 million sales—a remarkable 20% increase. Looking ahead to 2025, Buffini envisions a decade-high spring selling season with a solid 15% growth for the year.


High Rents Urge Potential Buyers into The Market

The impact of rising rents adds another layer to the narrative, making the prospect of homeownership even more appealing. This pent-up demand from potential buyers, including the 72 million millennials in the United States is one of the driving forces of Buffini’s positive predictions. 


With the average age of first-time homebuyers at 35, an estimated 45.5 million individuals are primed to enter the market in 2024 as rates become more favorable. 


“Rents have been the single biggest contributor to inflation, not gas prices, not food prices — rents,” Buffini states. “Now, they’ve stabilized, but rent is extremely high. The demand to buy has never been higher. People want to get in the game.”

The Prediction: Buffini's forecasts hint at a bustling market, spurred by rate cuts and rising sales, drawing interest from both millennials and others keen on moving, with family closeness as the primary incentive.


Buffini's advice guides buyers and sellers through the exciting possibilities in Sacramento's real estate market. For more personalized local insights, connect with our team as we navigate the promising year ahead in 2024.






Sources Cited: 

  1. “Home Sales Are Expected to Soar in These California Cities Next Year.” https://ktla.com/news/california/home-sales-are-expected-to-soar-next-year-in-these-california-cities/#:~:text=Five%20metro%20areas%20are%20predicted,%25)%20and%20Sacramento%20(10.3%25). Dec 5, 2023. 
  2. “Brian Buffini’s 2024 Bold Predictions: Lower Rates to Fuel Pent-Up Demand.”https://blog.buffiniandcompany.com/brian-buffinis-bold-predictions-for-2024-lower-rates-to-fuel-a-pent-up-demand/. Dec. 11, 2023.


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