California home sales picked up steam in February, increasing from both the previous month and year, according to the California Association of REALTORS® (C.A.R.). REALTOR® officials attribute the gain to some improvement in housing inventory and moderating home price appreciation.
Closed escrow sales of existing, single-family detached homes in the state reached 393,360 units in February, according to information from more than 90 local REALTOR® associations and MLSes statewide. February sales were up 2.6 percent from January and up 6.4 percent compared with home sales in February 2015.
"Market activity continues to be dampened by low housing inventory as baby boomers stay in their homes longer and new home construction, while improving, falls below needed supplies,"
said Pat "Ziggy" Zicarelli, C.A.R. president.
After accelerating for five straight months, the median price of an existing, single-family detached California home fell 4.7 percent in February to $446,460 from $468,330 in January. February's median price was 3.8 percent higher than the revised $429,930 recorded in February 2015.
Home buyers are looking at outlying areas where there is more inventory and affordability. "February's home price increase was the slowest rate of growth in six months, reflecting a shift in sales toward lower-priced, inland areas as buyers feeling the affordability crunch and tight supplies move away from urban cores to find affordable housing," said Leslie Appleton-Young, C.A.R.'s vice president and chief economist. "Home buyers in the Bay Area are seeking to buy in Contra Costa, Solano, or Sonoma counties, rather than San Francisco, and Southern California home buyers are moving inland to Riverside, San Bernardino, or Central Valley areas, where housing inventory is more abundant and affordable."
The number of active listings increased for the second consecutive month after declining for five straight months. Active listings increased 4.1 percent from January on a statewide basis. In the Bay Area, listings were up by 27.7 percent. The Bay Area continues to be the only region where homes are selling above original list prices due to constrained supply.
"The demand remains strong in Silicon Valley, where we definitely need more housing. Construction is definitely not keeping in pace with demand," said Karen Trolan, president of the Silicon Valley Association of REALTORS®. "The average price per square foot for an existing, single-family home in the state was $222 in February. In Santa Clara County, according to C.A.R.'s data, the average price per square foot for an existing single-family home is $567."
Santa Clara County's February home sales were down 7.8 percent from January and down 10.6 percent from February 2015. The February 2016 median sales price in the county jumped to $942,500, up 5.3 percent from $895,000 in January and up 3 percent from $915,130 in February 2015.
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.
For further information, please email or call the SILVAR office at (408) 200-0100.