California Housing Market Bounces Back in February

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News Summary

The California housing market experienced a significant rebound in February, with home sales surging by 11% from the previous month. With 283,540 homes sold, this marks the highest activity since October 2022. Year-over-year sales also increased slightly by 2.6%. Despite a 1.2% drop in median home prices to $829,060, active listings reached a four-month high. Regions such as the San Francisco Bay Area saw price gains, while mortgage rates dipped slightly, potentially boosting buyer interest. Analysts remain cautiously optimistic about the market’s trajectory amid economic uncertainties.

California Housing Market Bounces Back in February

California, the Golden State, is turning some heads in the housing market this February! The latest reports reveal a noteworthy rebound in home sales, which is likely making both buyers and sellers sit up and take notice. The data shows that sales of existing single-family homes soared by a whopping 11% in February. That’s a total of 283,540 homes sold compared to 254,110 homes the previous month, January. This jump in activity is the highest the market has seen since October 2022 and is definitely a sign that things may be looking up!

A Yearly Comparison That’s Encouraging

Moreover, for those who like to compare year-over-year stats, the February sales figures are showing a nice 2.6% increase from the same month last year when 276,280 homes were sold. It’s clear that the market is beginning to shake off the sluggish start it had at the beginning of 2024.

Housing Prices: A Mixed Bag

1.2% to $829,060 in February, sliding down from $838,850 in January. Even with the dip in prices, active home listings reached a four-month high, marking the 13th consecutive month of annual gains in housing supply. Many are hoping that this increase in inventory will ease some of the competitive pressures seen in recent months.

Where Are Homes Selling?

San Francisco Bay Area has watched its median home prices jump by 3.5%, now sitting at an impressive $1.2 million. The Central Coast isn’t far behind, experiencing a 1.6% increase. On the flip side, the Southern California market saw a 3% drop in home sales, while the Far North experienced a significant 4.9% decline compared to last year.

Mortgage Rates Moving in the Right Direction

6.62%, down from 6.65% in previous months. This slight decrease in interest rates might just stimulate buyer interest, potentially paving the way for more sales as this year progresses.

The Market Outlook

26 days before selling, a rise from 22 days in January. This extended waiting period might change as consumer sentiment shifts in light of better inventory levels and competitive conditions. Experts are cautiously optimistic, predicting a positive swing in the housing market through the second and third quarters of 2025, provided mortgage rates stabilize further.

Not All Homes Priced the Same

Far North region offers California’s most affordable single-family homes, with a median sales price of only $386,000. Meanwhile, five counties in California boast home prices below the statewide average, which includes Trinity, Lassen, Siskiyou, Glenn, and Tehama Counties. And who doesn’t love the idea of a bargain when it comes to home buying?