|
California Housing Market Rebounds in February with Highest Sales in Over Two Years
The California housing market saw a strong rebound in February, with home sales reaching their highest level in more than two years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Declining mortgage rates at the beginning of the year helped fuel buyer activity, pushing the state’s housing market into positive territory.
Key Market Highlights
- Home Sales Surge: Existing single-family home sales reached a seasonally adjusted annualized rate of 283,540 in February, an 11.6% increase from January and a 2.6% rise from February 2024.
- Median Home Price: February’s statewide median home price was $829,060, down 1.2% from January but up 2.8% from a year ago.
- Year-to-Date Growth: Statewide home sales were up 0.4% compared to last year.
Market Trends and Outlook
While February’s sales pace was the highest since October 2022, sales have remained below the 300,000 threshold since September 2022. Uncertainty in economic conditions and fluctuating mortgage rates may continue to impact homebuyer sentiment in the coming months.
Pending home sales dipped for the third consecutive month, though the decline was less pronounced than in January. The slowdown in homes entering escrow may be attributed to a brief rise in mortgage rates in early February, as well as growing concerns over a potential economic downturn. With market volatility expected to persist, pending sales could fluctuate further as we move into the spring homebuying season.
Expert Insights
C.A.R. President Heather Ozur highlighted the positive impact of lower mortgage rates, stating, “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. Lower borrowing costs have made homeownership more accessible to buyers who were previously priced out.”
Although the statewide median home price increased on a year-over-year basis for the 20th consecutive month, the annual gain was the smallest recorded since mid-2023. The month-over-month price decline of 1.2% was larger than the historical average drop of 0.7% for this time of year. However, prices are expected to trend upward in the coming months as the market enters its peak homebuying season from March through August.
C.A.R. Chief Economist Jordan Levine expressed optimism about the market’s trajectory: “The moderation in mortgage rates and increased housing inventory provided a much-needed boost in February. Although sales remain below historical averages, the recent uptick signals an encouraging shift. As mortgage rates stabilize later this year, we expect continued market improvement through the second and third quarters of 2025.”
Looking Ahead
The California housing market appears to be gaining momentum heading into the spring. With mortgage rates expected to remain relatively stable, more buyers may enter the market, leading to increased activity in the coming months. While economic and policy uncertainties remain, the recent rebound in home sales and growing inventory levels signal a promising outlook for the remainder of 2025.
Stay tuned for next week’s update as we continue to track key trends shaping the Southern California real estate market.
|
|
|
Buy Before You Sell
Move into your new home now - and sell your current home with peace of mind.
Many homeowners need to tap into the equity of their current home to purchase their next home. With our Buy Before You Sell program, you can do just that — and have the best possible outcome on your transaction.
Ask me how.
|
|
|
3603 E Hungerford St.
Long Beach, CA 90805
2 Bed + Bonus Room | 1 Bath | 1064 SF | $799,900
Charming 2-Bedroom + Bonus Room Home in a Quiet Long Beach Neighborhood. This beautifully updated home features fresh exterior paint, a new roof, and central AC. The light-filled living room boasts wood floors, recessed lighting, and an inviting atmosphere, while the updated kitchen includes granite counters, stainless steel appliances, and modern cabinetry. A spacious bonus room with a stone fireplace offers versatility as a family room or 3rd bedroom. The expansive backyard with a patio is perfect for entertaining or adding an ADU, and the long driveway with a finished 1-car garage provides plenty of parking. Located near Lakewood Mall and local amenities, this home is a must-see!
Eligible for a $50,000 down payment grant from City National Bank!
OPEN HOUSES
Saturday (3/22) & Sunday (3/23)
1:00 - 4:00pm
|
|
|
225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $299,900
Top-floor end unit condo in the heart of Long Beach, offering privacy and city views! This nicely updated home features an open living area with a private balcony, a stylish kitchen with butcher block countertops, and a bright bedroom with two mirrored closets. Located near top attractions like the Long Beach Convention Center and Shoreline Village, with easy access to dining, shopping, and transportation.
OPEN HOUSE
Sunday (3/23) 12:00 - 3:00pm
|
|
|
223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $799,900
Enjoy modern luxury living in this stunning 2019-built townhome at The Huxton in the East Village Arts District. This inviting home features an open-concept layout perfect for entertaining, with high ceilings, large windows, recessed lighting, and beautiful flooring throughout. The gourmet kitchen boasts quartz countertops, soft close cabinets, and upscale appliances by Bertazzoni and Bosch. Upstairs, two primary suites offer walk-in closets and luxurious bathrooms. Enjoy city views from the spacious rooftop deck – ideal for relaxing or BBQs. Eco-friendly features include owner-owned solar panels and a garage pre-planned for EV charging. Located in a secure, gated complex, you’ll be steps from the waterfront, dining, cafes, and nightlife. VA Approved.
Eligible for a $50,000 down payment grant from City National Bank!
|
|
|
3817 W Compton Ave.
Orange, CA 92868
4 Bed | 2 Bath | 1316 SF | $985,000
Beautiful Single-Story Pool Home with Modern Upgrades in Orange, CA! Discover this stunning 4-bedroom, 2-bathroom home situated on a spacious 7,598 sq. ft. lot in a fantastic Orange neighborhood. This thoughtfully updated home offers everything you need for comfortable living and entertaining. Located in a friendly neighborhood, this home offers unbeatable access to major freeways (I-5 and 22), top destinations like UCI Medical Center, Angels Stadium, Disneyland, Old Towne Orange, The Outlets at Orange, Chapman University, Honda Center, and GardenWalk. This is the perfect opportunity to live in a vibrant area while enjoying a tranquil and well-appointed home.
|
|
|
488 E. Ocean Blvd #1102
Long Beach, CA 90802
1 Bed | 1 Bath | 600 SF | $545,000
Stunning 11th-Floor Ocean View Condo in the Iconic Aqua Towers! Enjoy breathtaking ocean, marina, and city views in this stunning corner-unit high-rise. Featuring floor-to-ceiling windows, high ceilings, slate flooring, granite countertops, and a wrap-around balcony, this condo offers the ultimate in coastal living. A rare private enclosed garage near the elevator adds extra convenience. Resort-style amenities include 24-hour security, pool, spa, sauna, fitness center, and clubhouse. Just steps from the beach, shopping, dining, and entertainment—don’t miss this incredible opportunity!
|
|
|
3824 Pacific Ave.
Long Beach 90807
4 Bed | 3.5 Bath | 2646 SF | $1,710,000
This stunning, custom-built single story Mediterranean style pool home was completely rebuilt in 2007 and features 4 bedrooms and 3 1/2 baths. Set amidst towering palms on one of the city's most prestigious avenues. A Saltillo-tiled walk leads to custom-made iron doors entering into the grand reception foyer beneath soaring cathedral ceilings. Exquisite 3/4 solid oak hardwood flooring flows throughout. The awe-inspiring great room boasts a 12' high cathedral ceiling, crown moldings and a gas fireplace. Custom designed gourmet kitchen features classic cherry wood cabinetry, granite counters, walk-in pantry, 5 burner gas cooktop, Stainless dual ovens, Built-in ref/freezer, dishwasher, a large island with seating for 4 and a separate dining area. Outside the kitchen is a fabulous raised lighted deck leading to the newly built pool area. A unique roofed but open-air lounge perfect for indoor/outdoor living and entertaining. There is also a full pool bath located next to the open family room and pool.
|
|
|
700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $840,000
Experience luxury coastal living with breathtaking ocean views from every room in this beautifully remodeled high-rise condo at the iconic International Tower. This light-filled unit features an open floor plan, updated kitchen with sleek cabinets, marble countertops, and stainless steel appliances, and a spacious primary suite with a luxurious soaking tub. Enjoy panoramic vistas from the large wrap-around balcony, plus access to top-notch amenities, including a pool, fitness center, and 24-hour security, all just steps from the beach and vibrant local dining.
|
|
|
4859 Autry Ave.
Long Beach 90808
3 Bed | 2 Bath | 1594 SF | $985,000
Charming 3-Bedroom, 2-Bath Lakewood Village Home on a Picturesque Tree-Lined Street! This beautifully maintained home blends classic appeal with modern upgrades. Step into a bright living and dining area with refinished original hardwood floors and a bay window. The spacious kitchen boasts ample storage, a custom breakfast bar, and opens to a formal dining and family room. The primary suite offers a peaceful retreat with an updated bathroom. Additional highlights include central heat and AC, dual-pane windows, bamboo flooring, and a detached 2-car garage. Conveniently located near parks, shopping, and dining, this home provides a comfortable and connected lifestyle.
|
|
|
|
