Record-Breaking January-to-February Sales Surge in Southern California Housing Market
Southern California’s housing market has seen a significant awakening in the first two months of the year, according to recent data from CoreLogic. The region experienced a record-setting 17% increase in sales from January to February, the largest jump in a database dating back to 1988. This surge in sales helped push the median selling price up by 5% to $740,000, also the biggest January-to-February gain on record.
The unexpected boost in sales during February, typically not a hot month for homebuying, has raised eyebrows and sparked speculation about the future of the housing market in Southern California. The increase in sales can be attributed to a variety of factors, including the bottoming out of mortgage rates in late 2023 and a noticeable dip in home prices in December and January.
New home sales led the way in February, with a 29% increase, followed by existing condo sales up 23% and existing house sales up 15%. Builders in the region have been offering attractive concessions to buyers, including cut-rate financing, which has helped drive sales.
Despite the record one-month sales bump, February was still the third-slowest-selling February since 1988, highlighting the ongoing affordability challenges in Southern California. The region remains very unaffordable for many residents, with prices continuing to rise.
Looking at the performance of the six counties in Southern California, San Diego saw the highest increase in sales at 27%, followed by Ventura at 25% and Orange at 24%. Median prices also saw significant gains in these counties, with Orange County’s median price rising by 4.3% to $1.11 million.
While one month of increased sales does not necessarily indicate a trend, the February surge in Southern California’s housing market has certainly caught the attention of industry experts and potential buyers alike. As the spring homebuying season approaches, all eyes will be on the region to see if this momentum continues.