In 2024, the landscape of interior design continues to evolve, reflecting broader societal shifts towards sustainability, personal expression, and wellness. By embracing these trends, homeowners have the opportunity to create spaces that are not only stylish and contemporary but also deeply personal and in harmony with the natural world.

In this exploration of the most anticipated home design trends for 2024, we delve into six key trends that promise to redefine our living spaces, making them more aligned with our evolving lifestyles and values.

1. Maximalist Decor

Gone are the days of playing it safe. 2024 sees a bold departure from neutral, minimalist aesthetics, moving towards more dramatic and expressive design choices.

"I think 2024 is going to be all about bold, dramatic moves," says Devon Wegman, design director and founder of Chicago-based DGI Design x Build. "People are tired of playing it safe and sticking with neutrals, soft textures everywhere."

Maximalist decor is an aesthetic characterized by abundant use of color, pattern, and texture, creating a visually rich and layered interior.

Maximalist style calls for rich, saturated colors, eye-catching wallpaper, statement rugs, and furniture, alongside an abundance of art. It eschews matching; instead, spaces are filled with contrasting colors, textures, and patterns that, while diverse, are thoughtfully chosen to complement each other.

Maximalism celebrates personal expression through design, resulting in spaces that are vibrant, dynamic, and filled with character, where every inch of space is utilized and celebrated.

Keep in mind that not everybody will be on board with your style. So when it comes time to sell, you will likely have to revert back to a minimalist style again.

Photo by Julia Chasman Design - Houzz.com

2. Curvilinear Forms and Nature-Inspired Shapes

"By and large curves are in. Whether they are on a furniture silhouette or in the actual architecture, they are back in a big way and softening our living experiences," states Brad Ramsey, principal and founder of Brad Ramsey Interiors, highlighting a shift towards softer, more organic forms in furniture and architectural elements.

Curved elements break up the visual field, lending a sense of spaciousness and whimsy to modern settings and preventing a sterile atmosphere. Opting for furnishings like a curved couch, round coffee table, or arched doorways introduces organic shapes that contrast with the straight lines typically found in contemporary design.

This trend is a nod to biophilic design, emphasizing shapes and forms inspired by nature, promoting an atmosphere of calmness and relaxation within the home.

3. Mixed Metals: Harmonizing Contrasts

In the realm of interior design, the harmonious blending of different metal finishes, known as the Mixed Metals trend, is set to make a significant impact in 2024.

"Mixing metals will be a hit in bathrooms and beyond in 2024," interior designer, Joshua Smith remarks, underscoring the versatility and visual interest that mixed metals bring to any space​​.

This trend moves away from the traditional approach of matching every metal finish in a room, encouraging a bold mix of chrome, brass, nickel, and black or bronze finishes to create a dynamic and layered aesthetic.

Although there's no hard rule on the number of metals you can combine in a space, it's generally advised to limit the mix to just two metals for coherence.

The most challenging aspect of mixing metals is selecting types that complement each other effectively. A successful strategy often involves pairing contrasting metals, such as combining polished nickel with matte black, for a deliberate and impactful look.

By skillfully combining different metals, designers can add depth, contrast, and a contemporary edge to interiors, from the kitchen's cabinet handles to the living room's light fixtures.

Photo by SGDI - Sarah Gallop Design Inc. - Houzz.com

4. Layered Lighting

Layered lighting is a key design trend for 2024, focusing on blending various light sources to create a balanced and adaptable illumination scheme in a room.

“Layered lighting is a design approach that combines multiple light sources—recessed lighting, pendants, sconces, lamps, undercabinet lighting, toe kicks, and more—to create a balanced and versatile illumination scheme in a room,” explains Kerrie Kelly, CEO and creative director of Kerrie Kelly Studio.

It moves beyond the simplicity of a single overhead light, emphasizing the strategic combination of diverse light sources to enhance a space's ambiance.

For example, create inviting areas with the soft glow from table and floor lamps and create functional spaces with targeted task lighting in workspaces like kitchens or studies.

The method not only boosts the aesthetic and functionality of a space, but also provides the flexibility to create varied atmospheres and accentuate distinct design elements.

Photo by Cuppett Kilpatrick Architecture + Interior Design - Houzz.com

5. Spa-Like Bathrooms

The bathroom transforms into a sanctuary in 2024, with designs that mimic the serene and rejuvenating atmosphere of a spa.

"Enhanced bathrooms that mimic the amenities of a spa are going to be on the rise, making a big splash in 2024," Ginger Curtis, founder and CEO of Urbanology Designs, explains.

Incorporating elements like cold plunge pools and steam rooms into bathroom designs reflects the growing emphasis on wellness and self-care. Even small enhancements, such as installing a massaging showerhead or a heated towel rack, can elevate your routine with a touch of luxury.

Handmade tiles and bespoke cabinetry can infuse style and luxury into your space. Swap out stark whites for warm neutrals, such as light wood tones, creams, and beiges, to achieve a more soothing ambiance. Enhance the atmosphere with soft ambient lighting, like a backlit mirror or decorative sconces, to complete the serene and elegant look.

Remember, this trend is about elevating the everyday experience, turning bathrooms into spaces for relaxation and renewal.

Photo by J.P. Hoffman Design Build - Houzz.com

6. Sustainability

In 2024, eco-conscious interior design takes center stage, enveloping many other trends. This movement is not just about choosing eco-friendly materials; it's about designing spaces that promote a deeper connection with the natural world.

Expect to see more living walls, sustainable materials, and designs that maximize natural light, enhancing the overall well-being of inhabitants.

Designers are increasingly prioritizing materials that are not only sustainable but also contribute to healthier environments, highlighting the shift towards green materials and low-impact manufacturing processes. This trend includes the use of recycled fabrics, biodegradable materials, and sustainable wood, signifying a move towards more responsible design choices.

The resurgence of vintage and second-hand furniture is also gaining in popularity, as reusing and repurposing old pieces is a sustainable choice that also adds character to spaces. This approach reduces waste and supports a circular economy, aligning with the sustainability ethos.

Echoing the broader sustainability trend, there is a specific focus on furniture that leaves a minimal environmental footprint. The push towards zero-impact furniture is about making conscious choices that respect the planet, Joshua Smith points out​. This trend encourages consumers to consider the sustainability practices of the brands they support, promoting a more eco-conscious approach to furnishing our homes.

Photo by Deborah French Designs - Houzz.com

When considering design changes, whether it's a simple repaint or a full remodel, understanding the potential impact on your home's resale value is crucial. Buyer preferences can differ greatly depending on the neighborhood and price range of your home. I can assist you in making informed choices by evaluating how your proposed changes may affect your home's market value. Contact me to discuss your plans and ensure that your renovation or design updates will enhance your property's appeal and optimize its resale potential.


The content above reflects an opinion and serves purely for informational purposes. It should not be seen as financial, legal, or tax guidance. For advice tailored to your specific situation, please consult with the relevant professionals.

ADUs, or accessory dwelling units, are becoming increasingly popular, and it's easy to see why. These versatile backyard homes not only elevate your property's value but also offer a potential source of rental income and a flexible option for housing extended family.

Recognizing the importance of ADUs in addressing the housing crisis, the State of California has made efforts to simplify ADU building requirements. This has provided the impetus for homeowners throughout California to consider building an ADU.

For instance, according to an article in the Washington Post, the number of ADU permits issued across the state saw a remarkable increase, soaring to more than 23,000 in 2022 from fewer than 5,000 in 2017 — coinciding with a period of legislative and regulatory reforms that boosted ADU development in California.

To further promote the construction of ADUs, California lawmakers have continued to pass favorable legislation for homeowners. Read on for an in-depth explanation and insight into the new ADU laws AB 1033, AB 976, and AB 1332, which impact homeowners and buyers in 2024.

What is an ADU?

An Accessory Dwelling Unit (ADU) is a secondary housing unit located on the same lot as a larger, primary residence. ADUs, often referred to as granny flats, in-law suites, carriage homes or backyard cottages, are independent living spaces equipped with their own kitchen, sleeping, and bathroom facilities for one or more persons.

The Accessory Dwelling Unit Handbook, developed by the California Department of Housing and Community Development (HCD), defines the 3 main types of ADUs:

  • Detached: This type of unit stands alone, separate from the primary residence on the property.
  • Attached: This unit is directly connected to the primary structure, sharing at least one wall.
  • Converted Existing Space: This involves transforming an existing space (such as a primary bedroom, attached garage, storage area, or existing accessory structure) on the property into a self-contained living unit.

A special category of the converted space is the JADU, or Junior Accessory Dwelling Unit, where the transformation occurs entirely within the footprint of an existing or proposed single-family residence. JADUs can share bathrooms with the main house, but they must have a separate entrance and at minimum, an efficiency kitchen with sink, counter space, cabinets and cooking appliances.

Considering an ADU as a buyer or homeowner? Here's some helpful information and key benefits of ADUs to guide your decision.

The Benefits of ADUs

ADUs offer a range of benefits for both buyers and homeowners, each enhancing the living experience in unique ways:

Multigenerational Living and Aging in Place

ADUs provide the perfect balance of proximity and privacy for families. They enable loved ones to live together on the same property while maintaining their own separate spaces. This setup is ideal for those who value close family connections but also appreciate having their own privacy. Such units have become increasingly popular as a way to offer independent living spaces to family members.

ADUs are also a great solution for older adults who wish to stay close to their families while retaining independence. This arrangement offers the dual benefits of autonomy and accessible support from loved ones. For instance, if you have aging parents and want them nearby, acquiring a home with an ADU or constructing one on your existing property could be a practical choice.

Affordable to Build

Generally smaller in size, ADUs are often more cost-effective to construct than larger standalone homes. ADUs can also add significant value to your property.

Income Generation

Homeowners with an ADU, or those who build one, can benefit from the additional rental income, which can be used to offset mortgage payments. Recent laws have passed at the state level that make it easier to rent out your ADU, regardless if you live on the same property or not. However, short-term rentals, i.e. rentals of less than 30 days, are generally prohibited for ADUs in California.

AB 1033: ADUs can now be sold separately - like condos!

The introduction of AB 1033 dramatically alters the landscape for Accessory Dwelling Units (ADUs) by permitting their sale as separate entities from the primary residences on a property.

Under the groundbreaking legislation, property owners in participating cities will be able to construct an ADU on their land and sell it separately, following the same rules that apply to condominiums.

By allowing ADUs to be sold separately, the bill creates a new market of smaller, more affordable homes, tailored to the needs of modern families and individuals.

The law empowers local municipalities to pass ordinances enabling the individual sale of ADUs. This means that the adoption of these provisions will vary across different jurisdictions, with some cities embracing the change, while others may opt out.

The implementation of AB 1033 is not without its challenges. For homeowners, selling an ADU separately involves converting the property into a condominium. This process requires legal and survey expertise to submit the paperwork associated with conversion application, which includes a detailed subdivision map. Once these documents are recorded and approved, the ADU can be marketed as an independent unit. However, this conversion impacts the valuation of the primary residence, transforming it from a single-family home to a condominium, and necessitates the formation of a Homeowners Association (HOA) for shared property management.

An additional layer of complexity arises for property owners with existing loans. Selling a portion of loan-secured property, like an ADU, requires lender approval, a step that might not always be straightforward due to the dispersion of loan security.

AB 1033 marks a significant stride in making homeownership more accessible and providing property owners with greater flexibility. Yet, the steep learning curve involved in its application highlight the need for careful consideration and planning by homeowners.

For detailed information on AB 1033, refer to the official document.

AB 976: No more owner-occupancy requirements

Owner occupancy refers to the requirement that a homeowner who builds an ADU must live on the property, either in the ADU or the main residence. AB 976 brings a pivotal shift by permanently eliminating the owner occupancy requirement.

This change allows property owners to turn their properties into investment opportunities without the constraint of needing to live on-site.

This legislation expands upon the groundwork established by SB 13 in 2020, which initially set a moratorium on the owner occupancy requirement until 2025. In response to strong demand, the government has chosen to extend this moratorium indefinitely, marking a significant victory for property investors and homeowners.

It's important to note that while AB 976 liberalizes regulations for ADUs, Junior ADUs still fall under the owner occupancy requirement.

Additionally, local governments retain the authority to impose rental duration limits, restricting rentals to periods longer than 30 days.

This legislative update opens new avenues for property development and investment, aligning with the growing need for flexible and diverse housing options in California.

For detailed information on AB 976, refer to the official document.

AB 1332: Fast-tracked ADU development with pre-approved plans

AB 1332 is a pivotal piece of legislation that aims to streamline the process of ADU development across the state. By January 1, 2025, it requires all California cities and municipalities to implement a pre-approved ADU plan scheme, marking a significant step towards simplifying and expediting ADU construction.

Under AB 1332, cities are required to accept submissions for ADU plans and grant them pre-approved status for future use by applicants or other property owners. This innovative approach not only standardizes ADU development but also promotes transparency and accessibility.

The overarching goal of AB 1332 is to accelerate the ADU planning and construction process in California. By providing a selection of pre-approved designs on city websites, the law aims to cut down the time and expenses involved in custom ADU development.

This builds on previous regulation which expedited the approval process for ADU permits, mandating local agencies to approve or reject applications within 60 days.

AB 1332 represents a forward-thinking approach to housing development in California, offering a framework that could significantly ease the process of ADU construction and contribute to addressing the state's housing needs.

For detailed information on AB 1332, refer to the official document.

Considerations

The new regulations significantly benefit anyone interested in constructing an ADU on their property. But, remember that the specifics of the new ADU regulations can vary by county or city. What is true in San Jose may not be true in Cupertino, so it is important to do your research and seek expert advice to make informed decisions.

In addition, ADUs are subject to local zoning laws and building codes, which can vary significantly from one area to another.

In California, ADUs are only allowed in residential zoning districts for single-family and multi-family residential uses, and in mixed-use zoning districts where residential uses are permitted.

There are also lot size requirements to consider and they will vary across local jurisdictions. Each ADU type — attached, detached and conversion — has specific lot and size requirements, so you need to check with your local agency to find out what your lot size requirements are.

In California, off-street parking requirements for residential units have been relaxed for ADUs, but they might still apply. High-density areas could face increased on-street parking demand, particularly where public transport is limited.

A common challenge in ADU projects is assessing if the added structure requires expanded water, sewer, and electrical services. You'll need to coordinate with utility companies for electric and possibly gas connections, evaluate and upgrade your property's water and sewer capacity as necessary.

While some cities may seek ways to circumvent ADU legislation and discourage their development, it is safe to say that most of them are embracing backyard homes.

San Jose has embraced and facilitated the ADU movement by offering support, resources, and pre-approved plans, streamlining a complex ADU development process.

San Mateo County launched its 'One Stop Shop' program in 2019. It's goal is to assist homeowners with the design, permitting, and project management associated with building an ADU.

As we look towards the future in California's dynamic housing landscape, the ongoing evolution of ADU legislation remains a key topic of discussion and development statewide. Lawmakers are consistently focused on improving livability and accessibility, demonstrating their commitment to fine-tuning regulations that support the growth and integration of ADUs into communities.

YOU DON'T NEED TO GO IT ALONE!

ADUs have some great advantages for buyers and homeowners alike. If you're interested in evaluating whether an ADU right for you, reach out! I can help you navigate the local codes and regulations for this type of housing and what’s available in your market. My dedicated team is committed to offering you expert guidance and support. Additionally, my broad professional network stands as a rich resource, readily available to meet your unique needs and assist in your endeavors.

The content above is purely for informational purposes. It should not be seen as financial, legal, or tax guidance. For advice tailored to your specific situation, please consult with the relevant professionals.

The U.S. real estate market has experienced significant shifts in the past year or so, largely due to the Federal Reserve's measures to control inflation by increasing interest rates. These policies profoundly influenced the housing market for both buyers and sellers.

Buyers faced heightened borrowing costs, dampening affordability and delaying home purchases. Sellers, enjoying low-rate mortgages from the pandemic era, hesitated to enter a market marked by higher rates.

After their meeting in December 2023, Federal Reserve's hinted at a policy shift, pausing further interest rate hikes and signaling the possibility of rate cuts in 2024.

This development has injected optimism into the housing market, pointing to the potential for lower mortgage rates and a more vibrant market throughout 2024.

Home prices, mortgage rates, and inventory levels will all shape the U.S. housing market this year. In this article, we explore these factors and their implications for home buyers and sellers.

Experts Project Home Prices Will Increase

Despite challenging market conditions, home prices have shown remarkable resilience. Following a temporary decline in the latter half of 2022 and into early 2023, home prices have started to rise again. This upward trend persisted even as mortgage rates soared to a peak of 7.79% in October of last year.

A key reason behind the stability of home prices, contrary to some predictions of a crash, is the ongoing shortage of inventory, which remains well below the threshold that would be necessary to significantly drive down prices.

“You’re not going to see house prices decline,” says Rick Arvielo, head of mortgage firm New American Funding. “There’s just not enough inventory.”

Forecasts into 2024 suggest continued price growth, with the Mortgage Bankers Association projecting the largest increase at 4.1%, while mortgage giants Freddie Mac and Fannie Mae predict more modest growth at 3.2% and 2.6%, respectively. Realtor.com stands out from the others by anticipating a drop in prices of 1.7%.

  • For Buyers: Affordability will continues to challenge buyers in 2024. However, buying now could lead to home value appreciation and equity gains over time. Conversely, waiting might result in higher future costs, as current trends suggest rising home prices.
  • For Sellers: Despite slower price growth, it's a good time to capitalize on your equity and stand out in a less saturated market. Get in touch for tailored advice and to understand your home's current market value.
What's Ahead for Mortgage Rates?

Over the past year, mortgage rates surged in response to the Fed's monetary policies aimed at controlling inflation. This hike cooled the previously overheated housing market.

Inflation is showing signs of moderating, and typically, mortgage rates fall as inflation cools. This trend has been evident in recent weeks. The Federal Reserve's decision to pause its Federal Funds Rate increases, with potential rate cuts on the horizon for 2024, bolsters expert confidence in declining mortgage rates.

The average rate for a 30-year fixed mortgage loan peaked at 7.79% in the last week of October 2023, marking the highest average in over two decades. However, rates have since trended downward. The current average rate for a 30-year fixed mortgage is 6.69%, a significant drop from last year's peak.

Forecasts for the end of 2024 vary slightly among experts. NAR predicts an average rate of 6.3% by the fourth quarter of this year. Wells Fargo economists and the Mortgage Bankers Association are more optimistic, projecting the average 30-year fixed rate to fall to around 6% by the end of 2024. Fannie Mae, the largest mortgage financier, has the least optimistic outlook of the major forecasters, predicting the average will be 6.5% by the end of the year.

While no one can predict mortgage rates with absolute certainty, the Federal Reserve's recent policy decisions suggest a positive outlook. Though some volatility may persist, overall affordability is expected to improve as rates continue to ease.

  • For Buyers: Lower borrowing costs mean enhanced affordability, potentially widening the pool of properties within your budget. It also means that buyers can secure loans with more favorable terms, reducing the long-term financial burden of homeownership.
  • For Sellers: Sellers stand to benefit from lower mortgage rates as well. Reduced rates often translate to increased buyer demand, as more people find it financially viable to purchase homes. This can lead to a more dynamic market, with sellers enjoying a broader audience for their listings and potentially quicker sales cycles.
Tight Inventory Conditions Will Persist

One of the defining features of the real estate market in recent years has been the low inventory levels, which have driven up home prices and created a seller's market. As 2024 unfolds, the question is whether this trend will continue or if we'll see a shift to a more balanced market.

Recent data from Realtor.com indicates a nuanced picture. As of October 2023, there has been a modest increase in national housing supply of just over 5% month-over-month. While inventory is up in some markets, the overall number of homes for sale remains substantially lower than typical levels seen in the "normal" pre-pandemic years.

A significant factor influencing the current market is the mortgage rate lock-in effect. Many U.S. homeowners are currently benefiting from mortgage rates significantly lower than today's average. This financial advantage has led to a reluctance to sell and re-enter the market at higher rates, contributing to the inventory shortage.

Lawrence Yun, a leading economist at NAR, anticipates a shift in seller behavior. Speaking at a conference in November, he predicted a surge in listings as homeowners adjust to market conditions. "With the realization that life must move forward, we expect a wave of pent-up sellers to enter the market," he suggested. Yun foresees inventory to climb about 30% from 2023’s all-time low.

However, opinions among experts vary. “I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence advisory firm.

The current market conditions also have roots in the aftermath of the 2008 housing crash. Since then, new home construction has not kept pace with historical norms, resulting in a prolonged inventory deficit. This shortfall has been a key factor in maintaining low inventory levels.

Newly built homes are becoming an increasingly significant part of today’s housing inventory. The National Association of Home Builders (NAHB) reports that newly built homes made up 31% of the total homes available for sale in November, significantly higher than the historical average of approximately 12%.

And even more new homes are on the way. Encouragingly, the latest Census report indicates that builders are now achieving long-term construction averages, signaling a potential rise in the availability of new homes.

  • For Buyers: An increase in inventory is good news for buyers. It means more options, but you still need to brace for potential bidding wars and prepare to make a strong offer. Have a firm budget in mind before entering the real estate market.
  • For Sellers: And, if you’re trying to sell, rest assured you haven’t missed your window of opportunity to potentially get multiple offers or see your house sell quickly. While inventory has ticked up some nationally, overall, it’s still low. 
A More Active Real Estate Market in 2024?

While home prices more than held firm in 2023, the U.S. housing market experienced a year-over-year decline in home sales as elevated interest rates kept many home buyers and sellers on the sidelines during 2023.

Significantly, the declines shrunk from a low of -37.5% in January to just -4.8% in November. This is seen as a potential early indicator of a market revival in 2024. Buyers and sellers, who have been waiting out the high rates, might start re-entering the market, especially if mortgage rates continue their downward trend in 2024.

“Lower mortgage rates would help spur home sales activity, which are expected to increase in 2024 compared to 2023,” predicts Selma Hepp, chief economist at CoreLogic. “Declines in mortgage rates will drive more sellers to trade their existing home and help add much-needed inventory to the market, leading to more transactions.”

Additionally, there are indications that potential home buyers who were holding out for lower rates may be growing impatient. According to a recent Bank of America survey, the percentage of those willing to wait for prices or mortgage rates to decrease before buying a home has dropped from 85% to 62% in a mere six-month period.

Lawrence Yun, chief economist at NAR, is projecting sales of existing homes will climb 14% this year. That would be the biggest annual gain in more than four decades, according to data from NAR.

The broader economic landscape, including job market strength and consumer confidence, will also play a significant role in shaping buyer and seller behaviors. A stable or improving economy, combined with lower mortgage rates, could lead to a bustling real estate market in 2024.

  • For Buyers: Buyers are likely to experience a more welcoming market, with more options and negotiating power. Lower rates increase purchasing power, allowing buyers to consider a wider range of properties or to save on interest payments.
  • For Sellers: For sellers, the increased buyer interest can lead to more competitive pricing and potentially faster sales. Sellers can anticipate a larger pool of potential buyers, which may lead to more competitive offers and a favorable selling environment. However, they will also need to be mindful of market pricing to attract the right buyers.

As we start 2024, the U.S. real estate landscape is poised for change, shaped by evolving mortgage rates, home prices, and inventory levels. Staying informed and agile will be key to navigating the 2024 real estate market successfully. As a real estate agent committed to guiding my clients through these changes, I remain dedicated to providing expert insights and tailored strategies for every real estate journey.

Exploring holiday light displays is one of our favorite seasonal activities, and the Bay Area is full of dazzling options. From twinkling neighborhoods to immersive light experiences, these destinations promise a brilliant holiday adventure for all ages. Imagine walking or driving through a wonderland of millions of lights, riding a train surrounded by festive decorations, marveling at Christmas lights amidst a snowy scene, or joining a menorah lighting ceremony.

Beyond the lights, you'll find tasty treats (including hot chocolate!), entertainment, and even opportunities to meet Santa. We've included areas renowned for homes decked out in holiday splendor. Whether you love sophisticated displays or vibrant LED extravaganzas, these are our top picks for savoring the holiday spirit and soaking in the joyous atmosphere!

Check out my blog post Silicon Valley's Best Christmas Tree Farms and my upcoming events page for more holiday fun!

Santa Claus is coming to town!

Santa will be making his annual visit to the Bay Area at a number of different locations this season. Save your spot here.


Fairmont San Francisco Christmas Gingerbread House

Every year, the lobby of the Fairmont Hotel on Nob Hill is beautifully lit with a giant Christmas tree and life-sized Gingerbread House on display from Thanksgiving through the New Year. With hundreds of bricks of real gingerbread baked by their pastry team and many pounds of See’s Candies, their Gingerbread House display is a sight to behold! For a truly unique experience, consider booking a private dining session inside the Gingerbread House, accommodating up to 8 guests. Immerse yourself in the rich aromas and festive sounds of the holiday season.

Embark on a new holiday tradition with the Fairmont San Francisco’s Holiday Tea. Revel in the elegant ambiance of Laurel Court, savoring steaming pots of exquisite loose-leaf tea, freshly baked scones, delightful tea sandwiches, and an array of sumptuous pastries and sweets (see their menu) with your family and friends. Visit OpenTable to reserve a table.

  • Address: 950 Mason Street, San Francisco, CA 94108
  • Date: Thanksgiving to Jan 1st, 2024
  • Price: Free to look around the lobby. Fairmont Holiday Tea is $169/adults and $95/kids under 12 plus of 20% service charge and 8.625% tax. Special buffets on Christmas Eve, Christmas Day and New Year's Eve.

Holidays at Filoli

Begin a delightful new holiday tradition with Holidays at Filoli! Experience the wonder of the House, beautifully adorned in holiday cheer, and meander through the enchanting winter garden, aglow with twinkling festive lights and decorations.

On the Dining Room Terrace, cozy up around the firepit and savor warm hot cider or aromatic mulled wine. With daily seatings at 3 pm, 5 pm, and 7 pm, this exclusive service provides a magical ambiance perfect for making memories with friends and family.

Delight in the Holiday Tea at Filoli's Garden House, a serene retreat where elegance and nature blend harmoniously. Enjoy a range of delicate finger sandwiches, freshly baked scones, and exquisite patisseries, all paired beautifully with fine tea and champagne in this tranquil and elegant setting.

On select dates, Santa will be making special appearances in the charming Woodland Garden Court. Guests have a unique opportunity to capture a memorable photo with Santa on his festive golden throne. Complete your visit with a delightful hot drink and a holiday treat!

To secure your magical moment, reserve your spot in advance on the Filoli website, as spaces are limited.

  • Address: 86 Cañada Road, Woodside, CA
  • Date: November 18, 2023 – January 7, 2024 from 10am – 9pm
  • Price: $39-43 (adult), $29-33 (child 5-17 yrs old), Free (under 5 yrs old); members receive 20% off

Christmas Tree Lane

Christmas Tree Lane celebrates its 82nd lighting this year! Get into the spirit of the season with a leisurely walk or drive through the Christmas displays, with the carolers, vintage lawn displays, and thousands of holiday lights. Open to both pedestrians and car traffic.

Los Altos Festival of Lights Parade

A cherished annual tradition in Los Altos, the parade features local school marching bands, an array of floats including the Teddy Bear, Mother Goose, and Ferris Wheel, alongside dancing elves, and, of course, Santa Claus. If you can't attend this year, be sure to catch the replay here.

Holiday Carriage Rides

Embrace the holiday spirit with a carriage ride through downtown Los Gatos' beautifully decorated streets This annual event invites you and your loved ones to enjoy the holiday lights and cheer from the cozy comfort of a horse-drawn carriage. This delightful journey comes with homemade cookies and hot chocolate. Be sure to make advanced reservations, as this popular event tends to book up quickly. Don’t miss the chance to be part of this cherished annual tradition!

  • Address: Downtown Los Gatos, Los Gatos, CA
  • Date: Select dates from December 7th - 23rd from 5pm to after 9pm
  • Price: Regular carriage is $130, max 6 people (up to 4 adults + 2 children under 8 years old); large carriage is $160 for up to six adults.

Fantasy of Lights

Fantasy of Lights, now celebrating its 25th year, has become a beloved part of the community's holiday celebrations for a quarter of a century. This enchanting event invites you to a magical evening either from the comfort of your vehicle or on a leisurely walk through the park. As you drive, tune into holiday music on your car radio to accompany the large animated displays, or enjoy the festive lights on a stroll with family and friends. Highlights include the thrilling Dinosaur Den with an erupting volcano, Santa playing basketball, playful penguins, blazing pirate cannons, and tunnels of moving lights. With over 50 themed displays and a magnificent 90-foot twinkling tree, you’re sure to be captivated at every turn during this festive adventure. You must purchase your ticket online in advance.

  • Address: Vasona Lake County Park, Los Gatos, CA
  • Date: Walk-through: December 2nd & 3rd from 4pm - 9pm; drive-through December 5th – 30th, 6pm – 10pm (closed Christmas day)
  • Price: $30 per vehicle, $50 for oversized vehicles (capacity 13+)

California's Great America WINTERFEST

WinterFest at California’s Great America returns, shining brighter than ever as the park transforms into a festive winter wonderland. Guests at WinterFest can ice-skate on Snow Flake Lake, stroll down festive Candy Cane Lane, and be dazzled by stunning lights while enjoying crafted hot chocolate and spectacular live shows. With over 60 rides and attractions, there's plenty to do, from writing letters to the North Pole and exploring Santa’s workshop to baking cookies in Mrs. Claus’ kitchen. The event also features live entertainment and a delicious holiday menu, offering savory mains, delectable desserts, and tempting snacks. The highlight is one of the Bay Area’s tallest Christmas trees, glowing with thousands of lights and flanked by giant toy soldiers. This captivating event, with its millions of lights, promises a memorable family Christmas experience.

Enchant Christmas

Enchant Christmas, billed as the World’s Most Magical Christmas Light Maze & Village, is set to illuminate PayPal Park, home of the San Jose Earthquakes, once again. From trees that sparkle 80 ft. in the air, to enormous Christmas ornaments, a narrative-driven maze adventure and millions of shimmering lights, Enchant offers an array of holiday activities, ensuring a memorable experience for all:

  • All New Light Maze: Embark on a fully-immersive sensory journey with Santa’s Magic Timepiece, where you'll hunt for eight missing star fragments to save Christmas.
  • The Village: Sample seasonal delights while shopping for holiday gifts from dozens of local vendors, showcasing home décor, jewelry, gourmet foods, and more.
  • Santa's Landing: Stop by Santa’s Landing in the Enchant Village to meet Santa and discover if you're on the naughty or nice list! Don't miss the chance for your annual photo with Santa, with professional photography options available.
  • Ice-Skating Trail: Glide through a sparkling forest of Christmas lights on real ice. Skates are provided for a memorable ice skating experience.
  • Little Elves Play Space: Enchant offers a special area for families, away from the main festivities. Included with any admission ticket, this area is designed for children aged 0-7 years old, offering a variety of fun activities tailored to their enjoyment.

Enjoy holiday-themed food and beverages that are sure to surprise and delight the foodies in your family. For more information and to purchase tickets, visit Enchant Christmas.

Santana Row Holiday Events

Explore the unique holiday decorations while enjoying all that Santana Row has to offer this holiday season:

  • Meet the Grinch: Meet the Grinch for a photo opportunity in Park Valencia (in front of Maggiano's) on Nov 24th from 2-4 PM. If you miss him at Santana Row, try to catch him at one of his other stops during his San Jose Thanksgiving Weekend Takeover!
  • Santana Snow Showers: It’s snowing on The Row every Tuesday & Saturday from 6pm to 8 pm in December! Santana Row brings the North Pole to San Jose for a festive, holiday celebration.
  • Spirit of the Row: Get into the Spirit of The Row, every Tuesday in December leading up to Christmas from 6 pm to 8 pm. Enjoy performances by local community groups on the main stage in Santana Row Park. During the shows, Left Bank will offer Hot Cocoa to-go for a warm treat!
  • Makers Market in The Park: Celebrate the holiday season by supporting local businesses at Santana Row on Saturday, December 9th, from 11 am to 5 pm! Enjoy live music, explore unique offerings from local artisans, and savor delicious food and drinks at the area's excellent eateries. Be sure to visit Makers Market's physical store for more American-made finds. It's a perfect day out for the whole family, including kids and pets, filled with shopping, dining, and entertainment.

For more information, see the Santana Row Holiday Events or contact the Santana Row Concierge at 408-551-4611.

Christmas in the Park

Christmas in the Park is an annual holiday tradition that takes place in the heart of Downtown San Jose at the Plaza de Cesar Chavez. Each year, the two-acre park is transformed into a holiday wonderland with over 40 musical and animated exhibits, glittering lights and a 50-foot illuminated Christmas Tree. Enjoy a winter wonderland of lights, songs and daily local entertainment while strolling through an enchanted forest of trees decorated by the community.

After a long summer at the North Pole, Santa is back at Christmas in the Park from November 25th to December 24th. Bring your camera and take pictures with jolly Old Nick himself!

"Christmas in the Park" Drive Thru Light Show

Experience a spectacular light show synchronized to music in the 2023 drive-through event, sure to create lasting memories. Your ticket purchase supports Christmas in the Park, a nonprofit organization. For more information and to book your timeslot, visit the Christmas in the Park website.

Dave's Christmas Lights Benefiting Make-a-Wish

For almost 20 years, this Willow Glen house at 1851 Cherry Ave has been displaying Christmas Lights to raise money to support sick children. You're invited to see the Christmas display, and leave a tax-deductible donation at one of the curbside bins or online at Make-a-Wish Foundation. Mr. and Mrs. Claus usually make an appearance!

Plan to make a night of it! Willow Glen is known for its holiday light displays and Christmas trees so take some time to tour this San Jose neighborhood.

Roaring Camp Railroads Holiday Lights Trains

Holiday Tree Walk: Get into the holiday spirit by taking the family on a 75-minute roundtrip ride on the Redwood Forest Steam Train. The trip starts at Roaring Camp depot in Felton, California and runs through Redwood forests to the top of nearby Bear Mountain, a distance of 3.25 miles. Greet Santa Claus while sipping hot cocoa. Enjoy winter themed activities while in town. See complete schedule and purchase tickets online.

  • Address: 5401 Graham Hill Rd, Felton, CA
  • Date: Departs Daily
  • Price: $39.95 adult (13 and up), $24.95 child (2-12 yrs old). Special Event Rates: $44.95 adult, $29.95 child; group tickets available.

Holiday Lights Train: Alternatively ride the Santa Cruz Beach Train from the Santa Cruz boardwalk. Enjoy train cars adorned with thousands of colorful lights, while rolling past Santa Cruz homes. There will be a visit by Santa, hot-spiced cider, live music and a holiday sing-along. See schedule and purchase tickets online.

  • Address: Santa Cruz Boardwalk, Santa Cruz, CA
  • Date: November 24-26, December 2-3, 9-10 and 16-23
  • Price: Standard Class Canopy Cars: $49.95 adult (13 and up), $35.95 children (2-12 yrs old); First Class Coach Cars: $64.95 adult, $45.95 child; group tickets available

Chanukah Train: Share in a new Chanukah tradition with a train ride through Santa Cruz, where you'll enjoy Chanukah stories, play dreidel, and savor kosher refreshments provided by Chabad by the Sea. There will be a lighting of the Menorah 15 mins before departure.

Holiday Lights | Santa Cruz County Fairgrounds

Create a new family tradition at the Santa Cruz County Fairgrounds this holiday season! Imagine over a half-mile of dazzling holiday displays: towering Christmas trees adorned with twinkling lights, Santa, reindeer, snowmen, illuminated tunnels, and other enchanting sights. Experience this wonderland from the comfort of your car, accompanied by holiday carols on your radio. Following your journey through the magical lights, visit the Holiday Food Stands for your favorite fair treats. Tickets for Holiday Lights are available now on Eventbrite.

Find the perfect gift for your loved ones at the 2023 Heritage Holiday Craft and Gift Fair. Adult admission is $10, children aged 6 to 11 are $5, and it's free for those 6 & under, including access to the Holiday Lights Walk-Thru. This exclusive two-day event is on Friday, Dec 1st, and Saturday, Dec 2nd, from noon to 9 pm.

Gilroy Gardens Holiday

The magic returns to Gilroy Gardens in the form of North Pole Nights where the entire park is transformed into the North Pole, with new friends and new adventures throughout. Explore Santa's Workshop, write a letter to Santa, and take a stroll through the animated musical Light Tunnel. Enhance your visit with ice-skating, cookie baking in Mrs. Claus' Cookie Corner, or savor a holiday feast.

North Pole Nights at Gilroy Gardens features the musical show "The Magic of Santa," featuring delightful characters such as Rudy the polar bear, Skitter the mouse, and Tinsel the dancing Christmas tree. Keep an eye out for a special appearance by Santa himself! This vibrant, family-oriented performance is included with park admission and occurs multiple times each evening. Join in the singing and dancing to help the characters convey their wishes to Santa, creating holiday magic in the process!

There’s no better way to get into the holiday spirit than by setting up the Christmas tree. Around this time of the year, families are getting together and heading out to the nearest lot to select the perfect tree. Why not start a new Christmas tradition? This year head to one of the many tree farms in the Bay Area to cut your own. It’s a great chance to be outdoors, breathing in the fresh pine scent. And when you’re done, enjoy a cup of hot chocolate with family and friends while creating new memories!

Here is my list of best Silicon Valley tree farms. Find your perfect Christmas tree, while getting into the holiday spirit! Most tree farms supply the saw, and the hot chocolate or apple cider. Why not make a day of it? Pack a picnic, roast marshmallows by the fire, ride the holiday train, and bring out your inner lumberjack! Don’t forget to dress warmly and bring boots, because it can be a little muddy.

Check out my blog post Silicon Valley's Dazzling Holiday Light Displays and my upcoming events page for more holiday fun!

ABC Tree Farms

ABC Tree Farms has been a family-owned and operated business for over 70 years. Their selection encompasses a variety of pre-cut Christmas trees, ranging in height from 2 feet to majestic 12+ feet, including Noble Fir, Nordmann Fir, Balsam Fir, Douglas Fir, Grand Fir, and Silver Tip. Additionally, they offer fresh Christmas wreaths, garlands, and tree stands to complete your holiday decor. Enjoy the convenience of having your chosen tree expertly trimmed and loaded onto your vehicle at no extra cost, courtesy of their friendly staff.

All major credit cards are accepted. Delivery and flocking is available at most locations. Curbside pick-up is available at select locations.

  • Address: Located throughout San Francisco Bay Area including the South Bay, East Bay and Peninsula, with multiple locations in Santa Clara and San Jose. Check ABC Tree Farms for location nearest you.
  • Phone: (408) 393-6303
  • Email: info@abctreefarms.net
  • Hours: Lots begin opening Nov 18 thru Nov 22, 2023, depending on location. Hours are typically Monday-Friday from 10 a.m. to 9 p.m. and Saturday/Sunday from 9 a.m. to 9 pm. Check the ABC Tree Farms website for exact hours of each locations.

Black Road Christmas Tree Farm

Located just west of Los Gatos, Black Road Christmas Tree Farm extends over three charming farms on Black Road. Choose from an extensive selection of trees, including Douglas Fir, Grand Fir, White Fir, Sierra Redwood, and Scotch Pine, all priced at $80. Enhance your home decor with one of their freshly-made wreaths, and pick up some complimentary firewood from Farm 3. Families can enjoy the picnic area at Lakeside School, adjacent to Farm 1, complete with picnic tables, a play structure, and a sprawling lawn for children's play.

  • Address: 20259 Black Road, Los Gatos, CA 90533
  • Phone: (408) 354-8472
  • Email: blackrdtreefarms@gmail.com
  • Hours: After Thanksgiving Day, all three farms are open on weekends and fully staffed during daylight hours. Farm 3 will also be open on weekdays. Check their Facebook page for the latest information on hours and weather conditions, as well as for parking availability.

Four Winds Christmas Trees

At Four Winds Ranch, located on a sprawling 60-acre farm, guests are provided with a saw and twine to select and cut their ideal Christmas tree. The farm boasts a diverse array of trees in various types and sizes, including Douglas Fir, White Fir, Grand Fir, Spruce, Blue Spruce, Silvertip, Noble, and Sequoia, all available for $80. Visitors are encouraged to bring a picnic lunch and create new family traditions amidst the festive atmosphere. On weekends, Four Winds enhances the experience with complimentary candy canes, hot chocolate, apple cider, and firewood, while supplies last.

  • Address: 19969 Skyline Blvd, Los Gatos, CA 90533
  • Phone: (408) 399-9020
  • Email: glahann@yahoo.com
  • Hours: Open Thanksgiving until Christmas: 8:30 am – 4:00 pm on weekends and the day after Thanksgiving, and 11:00 am – 3:00 pm on weekdays and Thanksgiving Day. Outside those hours you may visit the farm by appointment by contacting glahann@yahoo.com.

FROSTY’S Christmas Tree Farm

Located a short and scenic drive from Los Gatos, Frosty's offers a unique and engaging Christmas tree hunting experience. Upon arrival at the farm, guests are provided with a small handsaw, setting the stage for an authentic tree-selection adventure. Visitors have the option to either drive or stroll through the rows of lush, pesticide-free, naturally-grown Christmas trees. The selection includes Douglas Fir, Monterey Pine, Noble Fir, Sierra Pine, and Scotch Pine, with all trees priced uniformly at $90, irrespective of size or variety. Adding to the festive atmosphere, hot chocolate and coffee are available for guests, and on weekends, everyone can enjoy complimentary candy canes.

Patchen Christmas Tree Farms

Patchen farms, comprising two locations – 'Old Town' on Old Santa Cruz Highway and 'Rancho' on Old Summit Road – cater to a variety of preferences. Visitors can either embark on a quest across the hillsides to personally select and cut their ideal tree or opt for one of the freshly-cut trees available. The farms feature a wide array of tree varieties, including Douglas Fir, Sierra Redwood, Coast Redwood, Monterey Pine, Noble Fir, and more. Prices range from $85 to $105 for trees up to 7 feet, depending on variety. For those who prefer a living tree, the gift shop offers an assortment, which changes annually. Additionally, Mistletoe, holly, and handmade wreaths are available for purchase in the gift shops, adding to the festive offerings.

Make a day of it by packing a picnic. Enjoy the bonfire, free hot-mulled cider and candy canes. During the week, there is free wine tasting, and on the weekends, you can have your picture taken with Santa Claus. Snap a picture of the PATCHEN Grinch to enter to win a Stocking Stuffer.

Delivery available. Discounts for Military, Law Enforcement, Firefighters, and other First-Responders. Dogs on leash welcome.

  • Address: 22217 Old Santa Cruz Hwy, Los Gatos, CA
  • Phone: (408) 605-1522, (408) 353-1615 (text messages only)
  • Email: Jim@PatchenCalifornia.com
  • Hours: Hours vary by location. Check their website for details. Also available on the website is the schedule for appearances by the "real" Santa. Free wine tasting every weekday afternoon. Download a free wine-tasting card here.

Courtney's Christmas Tree Farm

Courtney's Christmas Tree Farm offers a delightful holiday experience, combining the joy of choosing the perfect Christmas tree from a diverse selection, including live potted trees, with the enchantment of a farm visit. Enjoy complimentary candy canes and meet the friendly farm animals in their petting zoo, a favorite among children. Highlighting the festive atmosphere, Santa Claus, Mrs. Claus, and their Elf Helpers visit annually from the North Pole. Their first visit will be Saturday, December 2, from 2 pm to 4:30 pm.

Battaglia Ranch Christmas Tree Farm

Battaglia Ranch, a popular choose-and-cut Christmas Tree Farm, is conveniently situated about 15 minutes south of San Jose, CA. Recognizable by its 35-foot-tall Santa Claus landmark off U.S. 101, between Morgan Hill and Gilroy, the farm offers a choice of three choose-and-cut tree varieties: Monterey Pine, Monterey Cypress, or Leyland Cypress. Additionally, pre-cut Fir trees sourced from Oregon are available.

The farm is renowned for its Christmas Tree Farm Train and Reindeer rides, cherished as a family tradition. Rides are complimentary for children under 3 years (lap children), with tickets for all other riders priced at $4, available for purchase at the Gift Shop. The shop also serves Hot Coffee, Hot Cocoa, a new delightful Mulling spice, assorted cold drinks, and packaged snacks. Santa Claus will be visiting Battaglia Ranch on November 24th, 25th, and 26th from 10am to 4pm.

Since 2020, Battaglia Ranch has offered the convenience of online ordering for pre-cut trees. Customers can choose a pick-up date and time, and the farm will prepare the tree for collection. Both delivery and contactless pickup options are available. For added convenience, they also provide a drive-thru service, allowing customers to select their tree from a variety of types and sizes without leaving their car.

If you're looking for a tree that has the look of freshly fallen snow, you can take home one of their trees flocked in one of four styles.

  • Address: 13580 Murphy Ave, San Martin, CA 95046
  • Phone: (408) 683-4730
  • Email: battagliaranch@sbcglobal.net
  • Hours: Open November 18th – December 21st from 9am – 5pm. Extended hours from November 24th to December 17th: 9am – 7pm. Closed November 23 (Thanksgiving). Choose-and-Cut lot closes at 4:30 daily. Hours subject to change pending weather conditions, so check their Facebook page.

Castro Valley Christmas Tree Farm

Castro Valley Christmas Tree Farm, nestled in the East Bay Hills just north of Castro Valley, operates as a choose-and-cut tree farm. This farm offers an extensive range of trees in various varieties and sizes. Their selection includes Monterey Pine, Douglas Fir, White Fir, Cedar, and Redwood. Additionally, they provide pre-cut Noble and Nordmann Firs for those seeking ready-to-go options.

Santa’s Tree Farm and Village

Santa's Tree Farm and Village spans a vast 487 acres and operates as a choose-and-cut Christmas tree farm. Offering a selection of six different types of Christmas trees all cultivated on the farm, they provide a saw for guests to select and cut their own Douglas Fir, White Fir, Noble Fir, or Monterey Pine. The pricing for choose-and-cut trees is a flat rate of $86.86, regardless of size, while the cost for pre-cut trees varies based on size. Additionally, for those desiring flocking or fire retardant, these services are available at an extra charge of $10 per foot.

Apart from trees, the farm also sells handmade wreaths, garlands, and tree stands. The festive spirit is further enhanced on weekends with holiday activities including train rides and visits with Santa. Mrs. Claus’ Kitchen offers an array of snacks for purchase, including soda, cookies, and hot chocolate, perfect for a cozy holiday experience. Santa Claus will be visiting the ranch on Saturday, December 2nd, 12:30 – 4:30 pm.

Complimentary cider, candy canes and visit with Santa with every tree purchase. Delivery is available, but you still must make the trip to the farm to select your tree. Credit cards are accepted. Dogs are welcomed.

Ward Ranch Christmas Tree Farm

Ward Ranch is a small, family-owned and operated choose-and-cut tree farm located in the Santa Cruz Mountains. They offer a large variety of trees including Douglas Fir, White Fir, Incense Cedar, Sierra Redwood, Grand Fir, Monterey Cypress, Arizona Cypress, Leyland Cypress, and Coastal Redwood. Each tree is priced at $95, with this cost covering all taxes, cleaning, and netting services. Additionally, they have pre-cut trees, with prices varying based on the species.

Visitors can enjoy complimentary hot tea or hot chocolate, along with popcorn freshly made over an open fire. The farm is dog-friendly, welcoming canine companions as long as they are kept on a leash.

Last month, the California Association of Realtors® (C.A.R.) released its annual housing market forecast for California. The forecast offers some insights into how the housing market might perform in 2024 based on current trends and projections.

The report outlines an encouraging forecast for the 2024 housing market, driven primarily by anticipated economic factors that point to decreasing mortgage interest rates. This development is expected to invigorate the California home sales sector next year, as both home prices and sales are expected to rise in 2024, reversing the downward trend that occurred in 2023.

The main points may be summarized as follows:

  • Sales of existing single-family homes are projected to rise by 22.9%, reaching 327,100 units from the 266,200 projected for 2023.
  • The median home price in California is expected to rise by 6.2%, reaching $860,300 in 2024, rebounding from a projected 1.5% decrease in 2023.
  • Despite these trends, housing affordability is predicted to remain challenging, with the market continuing to favor sellers due to persistent inventory shortages.

C.A.R. defines "housing affordability" as the percentage of households that can afford to purchase a median-priced home. It currently stands at 17% in California.

Mortgage Rates Expected to Dip

A key element in this forecast revolves around mortgage interest rates. After substantial increases, there's an expectation for a reduction in these rates in 2024, attributed to slower economic growth and subsiding inflation.

C.A.R. President Jennifer Branchini articulates optimism for the coming phase, identifying prospective declines in mortgage interest rates as a pivotal factor:

“2024 will be a better year for the California housing market for both buyers and sellers as mortgage interest rates are expected to decline next year. A more favorable market environment with lower borrowing costs, coupled with an increase in available homes for sale, will motivate buyers and sellers to reenter the market next year.”

At the time of the forecast’s release, the average rate for a 30-year fixed mortgage was approximately 7% — a figure based on nationwide surveys by Freddie Mac.

Inventory to Get a Boost – But Challenges Remain

Some encouraging news for potential homebuyers is the anticipated increase in housing inventory. As market conditions and the lending environment continue to improve, C.A.R. projects a 10% to 20% rise in active real estate listings in 2024.

Despite this anticipated growth, California's real estate market is projected to sustain a supply shortage into 2024, with the available inventory unlikely to meet buyer demand. Consequently, seller’s market conditions will likely persist.

However, it is positive to note that analysts from C.A.R. foresee a moderate rise in listings, a development that would expand options for potential homebuyers.

Economic Factors Underpinning the Forecast

The forecast also incorporates broader economic indicators. The U.S. GDP is projected to grow modestly by 0.7% in 2024, down from a 1.7% increase in 2023. Concurrently, California expects a slowdown in nonfarm job growth and a slight uptick in unemployment rates.

Inflation, a primary concern, is set for a gradual reduction, with the Consumer Price Index (CPI) projected at 2.6% for 2024, down from 3.9% in 2023.

Mortgage interest rates are also central to this outlook. After reaching 6.7% in 2023, average rates for a 30-year fixed mortgage are anticipated to stabilize at around 6.0% in 2024 — relatively high compared to pre-pandemic figures, but a moderation from historical peaks.

C.A.R.’s Senior Vice President and Chief Economist, Jordan Levine, summarized this as follows:

With the economy expected to soften in 2024, the Federal Reserve Bank will begin loosening its monetary policy next year. Mortgage rates will trend down throughout 2024, and the average 30-year fixed rate mortgage could reach the mid-5% range by the end of next year. Buyers will have more financial flexibility to purchase homes at higher prices, which could generate increased housing demand and result in more upward pressure on home prices.

Overall, C.A.R.’s 2024 forecast is optimistic, highlighting potential relief for buyers through lower mortgage rates and increased inventory, albeit within a still competitive market. For sellers, the outlook suggests the possibility of sustained gains.

The 2024 forecast indicates a pivotal year for the California housing market, marked by increased opportunities driven by economic shifts and moderated mortgage rates.

Our goal is to serve our clients for the long term by educating, informing and sharing our expertise about the real estate market.
NANCY DINSHAW, Broker Associate
DRE# 01924283
19400 Stevens Creek Blvd, Ste 200
Cupertino, CA 95014
© 2021 NANCY DINSHAW ALL RIGHTS RESERVED. DRE# 01924283. RADIUS AGENT REALTY is a licensed Real Estate Broker and abides by equal housing opportunity laws. Website by Audacious Designs.
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