Despite a recent rise in mortgage rates, California's housing market saw more activity in February. According to the California Association of Realtors, statewide home sales last month reached levels not seen since September 2022. The monthly sales increase was the second straight month of double-digit gains, and it was also the second consecutive month of year-over-year gains.
February's sales pace jumped 12.8% from the revised 257,040 homes sold in January to 290,020. Home sales were 1.3% higher than a year ago, when a revised 286,290 homes were sold on an annualized basis.
"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 homebuying season."
California's median price gained 9.7% from $735,300 in February 2023 to $806,490 in February 2024. The statewide median home price was 2.2% higher than January's $789,480. The near-double-digit, year-over-year gain was the eighth straight month of annual price increases.
C.A.R. reports sales of homes priced at or above $1 million have been holding up better in the last few months than more affordable options. The high-end market segment continued to grow year-over-year in February by double digits. This is the case in high-priced Silicon Valley.
According to the state Realtor association report, Santa Clara County, February sales increased 32.8% from February 2023 and increased 25.9% from January. In San Mateo County, February sales were up 22.1% from last year and jumped 56.7% from January.
Santa Clara County's February 2024 median price reached $1,808,890, which was 20.6% higher than $1,500,000 a year ago and a 5.8% increase from $1,710,440 in January. Meanwhile, San Mateo County's February 2024 median price softened to $1,922,500, a decrease of 7.6% from $2,080,000 in February 2023 and down 2.7% from $1,975,000 in January of this year.
"We started noticing more activity in our local markets at the start of the year as more listings began showing up and homes took less time to sell. These are good indicators that market momentum is building," said Eileen Giorgi, president of the Silicon Valley Association of Realtors.
According to MLSListings, in San Mateo County, the number of new listings for the month of February increased 7% over January, and 17% over February of last year. In Santa Clara County, the number of new listings for February were up 34% over January, and up 18% from February of last year.
"The median days on market in Santa Clara County in January was 11 days. This dropped to eight days in February. In San Mateo County, homes stayed in the market a median 19 days. In February, homes stayed just a median 10 days," noted Giorgi. "Moreover, homes continue to sell at 105% to 107% of their list price in both counties. I believe more buyers and sellers are optimistic and ready to usher in the spring market."
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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