California’s housing market momentum continues in February

California’s housing market continued to maintain a solid sales pace in February, according to the latest housing report from the California Association of Realtors. Despite rising interest rates and home prices, the housing market momentum stayed particularly strong in the San Francisco

Bay Area, where the year-over-year number of sales dropped 13.7 percent but was up 6.6 percent from January. The region led the state in home prices with a February median price at $1.335 million, topped by $2.1 million in San Mateo County, $1.9 million in San Francisco, $1.82 million in Santa Clara County and $1.58 million in Marin County.

Sales of existing, single-family homes in California amounted to 424,640 in February, down 4.5 percent from January and down 8.2 percent from February 2021. Realtor officials anticipate the number of sales to rise as they expect more inventory in the coming months.

“Despite higher mortgage rates, California’s housing market is holding up remarkably strong, with home prices reaccelerating, market competition growing and signs that the listings crunch is thawing,” said C.A.R. President Otto Catrina. “Prospective buyers are taking advantage of still-low rates before they move higher and getting a jump on competition before the start of the spring home buying season.”

Statewide, the February median home price rose to $771,270, up 0.7 percent from $765,610 in January and up 10.3 percent from $699,000 in February 2021. The stronger-than-expected growth in the statewide median price is attributed partly to a change in the mix of sales toward homes in the milliondollar price range, as sales jumped in higherpriced regions such as the Central Coast and the San Francisco Bay Area, according to C.A.R.

“Demand for homes in the state is so high, but home sales continue to be constrained by low inventory, which only leads to home prices rising even more. This is most evident in Silicon Valley where prices are off the charts,” said Brett Caviness, president of the Silicon Valley Association of Realtors. “Median home prices have increased in all major cities in San Mateo and Santa Clara counties. Homes for sale are only staying a week in the market and buyers are willing to pay a median 115 to 117 percent over asking price.”

In San Mateo County, the number of homes sold year-over-year was down 24.4 percent and down 0.5 percent month-over-month. The February median sales price for a single-family home reached $2.1 million, 5 percent more than January’s median of $2 million and 10.5 percent more than

$1.9 million in February 2021. According to data and trends from Aculist, a subsidiary of Mlslistings, the median sale-to-list price ratio was at 122 percent in Daly City, 118 percent, in Burlingame, and as high as 124 percent in Belmont.

In Santa Clara County, the number of homes sold in February was up 10 percent from January and down 17 percent from February 2021. The county’s February median sales price of $1,820,000, was 6 percent more than January’s median price of $1,716,000, and up 22.5 percent from $1,486,250 in February 2021. The median saleto-list price ratio was at 117 percent, with buyers paying from 106 percent over asking price in Gilroy to as high as 126 percent in Campbell and 132 percent over list price in Cupertino.

“We just have not had many new listings, so it’s been a tough environment for buyers. These price gains are encouraging more sellers to sell, so we are likely to see more inventory in the coming months. Already in February there were 100 more new listings in

San Mateo County and over 200 more in Santa Clara County compared to listings in January,” said Caviness.