California home sales rose significantly in February 2025

In February, California's housing market saw an unexpected rebound in existing single-family home sales. This came after a significant drop in sales during January. According to the California Association of Realtors (CAR), home sales reached a two-year high in February. The increase can be linked to a slight decline in mortgage rates, which have fallen for six consecutive weeks. With lower borrowing costs, more buyers are entering the market after stepping back due to high home prices and limited inventory. February home sales totaled 283,540, an 11.6% increase from January and a 2.6% rise from a year earlier. Despite this positive change, the overall number of new listings fell slightly in February compared to January. Experts attribute this decline to market volatility and economic uncertainty. While total active listings reached a four-month high, they are still below pre-pandemic levels. The statewide median home price dropped to $829,060 in February, marking a 1.2% decrease from January. However, housing remains expensive compared to the national average, where the typical home cost $425,061. CAR officials expressed optimism about the market's future. They believe that increased inventory and lower mortgage rates will make homeownership more accessible. However, concerns remain about the potential impact of economic policies and the risk of a recession, which could slow down the housing market once again.