News Summary
California’s housing market saw an 11% increase in home sales in February, marking a rebound from previous months. Despite a slight dip in median prices, regional variations highlight growth in certain areas while pending sales show signs of pressure. With inventory rising and mortgage rates slightly decreasing, experts foresee a continued recovery as we move forward in 2025.
California Housing Market Bounces Back in February
California’s vibrant housing market was full of surprises in February, as it experienced a noticeable surge in sales and prices. So, if you’ve been keeping an eye on the real estate scene, here’s the scoop!
Sales Bounce Back
First off, let’s dive into the numbers! Home sales for existing single-family homes in California jumped by a whopping 11% last month, reaching a total of 283,540 homes sold compared to 254,110 homes in January. That’s a significant rebound!
To put this in perspective, February’s sales were also up by 2.6% compared to the same time last year—February 2024 saw 276,280 homes sold. This monthly sales increase is the highest we’ve seen since October 2022, indicating a growing interest among buyers.
Price Adjustments
Despite the surge in sales, the median price of an existing single-family home took a slight dip. It was down by 1.2% to $829,060 in February from $838,850 in January. When looking at the big picture, it appears home sales in California have struggled to break the 300,000 mark since 2022, but this recent increase could be a turning point for eager buyers.
Pending Sales Under Pressure
Now, it’s important to note that pending home sales have decreased for three months straight. Factors such as rising mortgage rates and concerns about an impending recession are weighing heavily on potential buyers. As of February, the 30-year fixed-mortgage interest rate stood at 6.62%, slightly down from 6.65% in March.
Regional Highlights
When we zoom in on different regions in California, we see a varied landscape. In terms of home prices, two out of five major regions recorded gains compared to a year ago. The San Francisco Bay Area saw a solid 3.5% increase, while the Central Coast wasn’t far behind with a 1.6% rise. However, not all regions are faring as well. The Far North saw a 4.9% decrease in home sales year-over-year, and Southern California also experienced a 3% drop.
Days on the Market
So how long is it taking to sell a home these days? In February, homes stayed on the market for a median of 26 days, up from 22 days in January. The number of active home listings also made headlines, reaching a four-month high—marking the 13th consecutive month of annual gains in housing supply.
A Look at Affordability
For those looking for affordable options, the Far North region stands out as the most budget-friendly area, with a median sales price of just $386,000. In stark contrast, the median sale price in the Bay Area hit $1.2 million, up from $1.1 million in January. In fact, five counties in California reported home prices below the statewide average, including Trinity County and Lassen County.
The Road Ahead
As the housing market adjusts to these fluctuating prices and sales dynamics, experts are optimistic about improvements in the market as we move further into 2025. If mortgage rates can stabilize, we could see an even more encouraging environment for buyers and sellers alike.
So, to sum it up, February brought a breath of fresh air to California’s housing market. With increased activity and more inventory, things are looking up for those on the home-buying journey!
Deeper Dive: News & Info About This Topic
- Newsweek: California Housing Market Makes Sudden Shift
- Realtor: California Home Prices Dropping Chart
- OC Register: Why Stock Market Turmoil is Bad for California Home Prices
- Wikipedia: Housing Market
- Forbes: Housing Market Predictions
