Southern California Housing Market Shows Signs of Awakening with Record Sales and Price Increases in February

Southern California’s housing market has shown signs of awakening from its lengthy slumber, with record-setting sales and pricing gains in February. According to CoreLogic sales stats, the region saw a 17% jump in transactions from January, the largest increase on record dating back to 1988. The median selling price also rose by 5% to $740,000, marking the biggest January-to-February gain ever recorded.

The surge in sales was led by new homes, which saw a 29% increase, while existing condo sales rose by 23% and existing house sales by 15%. Builders in Southern California have been offering concessions to buyers, including cut-rate financing, which has contributed to the buying frenzy.

The increase in sales can be attributed to the bottoming of mortgage rates in late 2023, prompting house hunters to close deals before rates rose in 2024. Additionally, buyers may have been motivated by weaker pricing, as home prices in Southern California experienced their biggest 2-month dip in 12 years in December and January.

Despite the record one-month sales bump, February was still the third-slowest-selling February since 1988, highlighting the ongoing affordability challenges in the region. However, the sales escalation is a positive sign for a market that had been experiencing its slowest two-year homebuying pace on record.

In February, San Diego saw the highest sales gains, with a 27% increase from January, followed by Ventura with a 25% increase and Orange with a 24% increase. Median prices also saw significant gains in these counties, reflecting the overall upward trend in the market.

While one month does not make a trend, the February sales and pricing gains in Southern California are certainly eye-catching and could signal a shift in the housing market after years of sluggish activity.