Southern California Housing Market Shows Signs of Awakening
Southern California’s housing market seems to have finally woken up from its lengthy slumber, according to the latest data from CoreLogic. In February, the region saw a record-setting surge in both sales and prices, signaling a potential shift in the market.
Sales in the six-county region jumped by 17% from January, marking the largest January-to-February increase in the database dating back to 1988. This buying frenzy helped push the median selling price up by 5% to $740,000, also the biggest gain for that time period on record.
What’s interesting is that February is not typically known as a hot month for homebuying, but historical data shows that there have been noticeable upticks in sales and prices just before the traditional spring rush. This year, the increase in sales was led by new homes, which saw a 29% jump, followed by existing condos at 23% and existing houses at 15%.
The surge in February’s sales can be attributed to a combination of factors, including the bottoming out of mortgage rates in late 2023 and a slight dip in home prices in December and January. Additionally, the leap year added an extra day for business transactions, potentially boosting sales numbers.
While the one-month increase in sales is significant, it’s important to note that Southern California’s housing market has been sluggish in recent years. Despite the record bump in February, it was still the third-slowest-selling February since 1988, indicating that affordability remains a major issue in the region.
Looking at the performance of individual counties, San Diego saw the biggest sales gain at 27%, followed by Ventura at 25% and Orange at 24%. Los Angeles had the highest median price increase at 5.6%, reaching $845,000.
Overall, the data suggests that Southern California’s housing market may be starting to heat up after a period of dormancy. However, it remains to be seen whether this one-month surge will translate into a sustained trend of increased sales and prices in the coming months.