LOS ANGELES — The California housing market saw a resurgence in February, with statewide home sales reaching a two-year high thanks to lower mortgage rates.
The California Association of Realtors reported that sales of single-family homes in the state totaled 283,540 in February, an 11.6% uptick from the 254,110 homes sold in January and an increase of 2.6% year-over-year.
Meanwhile, Los Angeles and Orange counties also saw a month-to-month single-family home sales gain of 4.8% and 9.5%, respectively. Despite a 2.4% drop in sales in LA County compared to the previous year, Orange County’s home sales remained unchanged.
LA’s median single-family home price fell almost 4% in February, reaching $852,190, according to CAR. However, the price has increased from $817,100 last year.
Orange County’s median single-family home price rose to $1.46 million in February, from $1.43 million the previous month. Last February, the median price of a single-family home in Orange County was $1.35 million.
The statewide median home price for February stood at $829,060, marking a 1.2% drop from January and a 2.8% increase from February 2024’s $806,480.
CAR officials said February’s statewide sales level was the highest since October 2022. The association collects its data from realtors statewide and the Multiple Listing Service.
“California home sales rebounded strongly in February after a sluggish start to the year, supported by increased buyer activity and more available homes on the market,” said Heather Ozur, a Palm Springs realtor and president of CAR. “Lower borrowing costs made homeownership more accessible to buyers who were previously sidelined by affordability challenges, while the rise in available inventory will help ease some of the competitive pressures that have defined the market in recent years and set a positive tone for the market for the rest of the year.”
The bump in home sales comes as recession fears loom due to government and Wall Street uncertainty.
In recent weeks, fluctuating tariffs, government layoffs, inflation and a jittery economy have shaken consumer confidence and the financial markets.
With uncertainty remaining the theme for at least the first half of this year, CAR officials said that housing sentiment could be negatively impacted, and home sales, as a result, could remain soft in the upcoming months.
Volatile mortgage rates could affect pending sales as the market enters the spring homebuying season. The 30-year, fixed mortgage interest rate averaged 6.8% in February, up from 6.7% in February 2024.
CAR officials said that despite a strong rebound in February, home sales have stayed under 300,000 since September 2022.
CAR Senior Vice President and Chief Economist Jordan Levine said he’s hopeful that the market will continue its rebound.
“Although sales are still below historical averages, this increase marks an encouraging shift in the market. Despite ongoing economic and policy uncertainties, mortgage rates are expected to stabilize later this year. As a result, the housing market is likely to see continued improvement through the second and third quarters of 2025.”
