California's housing market bounced back in February after a slow start this year. The California Association of REALTORS® (C.A.R.) reports existing home sales and median home prices increased in February from both the previous month and year. Additionally, the statewide pending home sales soared in February to record the first double-digit annual gain in nearly three years, suggesting improved market conditions and more closed transactions in the coming months.
Closed escrow sales of existing, single-family detached homes in California totaled 368,160 units in February, up 4.7 percent from a revised 351,480 units in January and up 2.4 percent from a revised 359,600 in February 2014.
"While February's statewide improvement in the housing market was moderate, it's an encouraging sign, nevertheless, as we head into the spring home buying season," said Chris Kutzkey, president of C.A.R. "On the supply side, housing inventory improved overall with active listings growing at a faster pace of 5.3 percent when compared to last February."
The median price of an existing, single-family detached California home inched up from $426,660 in January to $428,970 in February. February's median price was 5.5 percent higher than the revised $406,460 recorded in February 2014.
"While the statewide median home price is higher than a year ago, the rate of increase has narrowed significantly since early 2014. Price gains have slowed, but the market is still a challenge for first-time home buyers in high-cost areas of the state," observed Chris Isaacson, president of the Silicon Valley Association of REALTORS®. "The San Francisco Bay Area continues to face a very constrained inventory and low housing affordability."
Statewide, the available supply of existing, single-family detached homes for sale in February was unchanged from the five months reported in January. The index was 4.7 months in February 2014. A six- to seven-month supply is considered typical in a normal market.
In the San Francisco Bay Area, the index was 3.2 months in February, slightly better than 3.1 in January. The index was 3.3 months in February last year. Santa Clara County has an index of 2.6 months, compared with 2.3 months in January and 2.5 months in February 2014.
Meanwhile, the California Association of REALTORS® reports statewide pending home sales jumped in February, with the Pending Home Sales Index increasing 24.8 percent from a revised 89.9 in January to 112.2, based on signed contracts. The month-to-month increase easily topped the long-run average increase of 17.9 percent observed in the last seven years.
Statewide pending home sales were up 15.6 percent on an annual basis from the 97.1 index recorded in February 2014. The yearly increase was the largest since April 2009 and was the first double-digit gain since April 2012.
San Francisco Bay Area's pending home sales index stood at 124.8 in February, up 23.3 percent from 101.2 in January and 13.1 percent from 110.3 percent in February 2014.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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