California Home Sales Reach 17-Month High

A recent uptick in mortgage rates notwithstanding, California’s housing market continued to demonstrate resilience in February, reaching sales levels not seen since September 2022, the California Association of Realtors (C.A.R.) said Tuesday. February’s annualized sales pace of 290,020 single-family homes rose 12.8% from the revised 257,040 homes sold in January and 1.3% from a year ago.

However, C.A.R. noted that the annualized February tally represented the 17th consecutive month of home sales below 300,000 units. Year-to-date, though, statewide home sales remained positive with an increase of 3.4%, suggesting a better spring homebuying season than that experienced last year.

“Housing supply conditions in California continued to improve in February with new active listings rising more than 10% for the second straight month,” said C.A.R. president Melanie Barker. “This is great news for buyers who have been competing for a dearth of homes for sale, and the momentum will hopefully build further as we enter the spring home buying season.”

Added C.A.R. chief economist Jordan Levine, “While the recent upward movement in interest rates may result in more moderate sales in March, we expect homebuyers on the sidelines to reenter the market as the economy slows and rates begin to trend down again in the second quarter.”