CA sees highest home sales in years as market rebounds. What’s behind the surge?

California’s housing market is on the rebound, with home sales and prices exceeding seasonal record levels, according to the latest data from the California Association of Realtors.

In February, sales of existing single-family homes rose by 11% for the month to 283,540 homes, up from 254,110 in January, the Realtors group said in its March home sales and price report.

That’s a 2.6% increase from a year ago, when 276,280 homes were sold “on an annualized basis,” the report said.

February’s jump in inventory sales was the highest since October 2022, according to the report, published on March 18.

The statewide median price of an existing single-family home declined by 1.2% in February to $829,060, compared to $838,850 in January.

However, the California Association of Realtors said, sales of existing single-family homes have hovered below 300,000 since 2022.

“With uncertainty remaining the theme for at least the first half of this year, housing sentiment could be negatively impacted, and home sales, as a result, could remain soft in the upcoming months,” the Realtors group said in a news release.

Meanwhile, pending home sales dropped for the third consecutive month.

The Realtors group cited an increase in mortgage rates and concern over a possible recession as factors that may have contributed to decreased demand for housing.

“The ongoing policy and economic uncertainties have been weighing on consumer confidence and have created instability in the financial market in the past few weeks,” the California Association of Realtors said.

Here’s what you need to know about the state of California’s housing market and its future:

Why are California home sales increasing?

Increased home sales were impacted by “lower borrowing costs made homeownership more accessible to buyers who were previously sidelined by affordability challenges,” California Association of Realtors president Heather Ozur said in the release.

“The rise in available inventory will help ease some of the competitive pressures that have defined the market in recent years and set a positive tone for the market for the rest of the year,” she said.

As of Thursday, April 10, the 30-year, fixed-mortgage interest rate was 6.62%, down from 6.65% in March, according to data from federal finance company Freddie Mac’s weekly mortgage survey.

Which California regions saw home prices increase?

Two of five major regions in California experienced median home prices increase in February, compared to a year ago, according to the California Association of Realtors.

The San Francisco Bay Area saw the biggest increase, with median home sales prices growing by 3.5% compared to February 2024, while the Central Coast saw a 1.6% jump, the Realtors group said.

Meanwhile, sales of existing single-family homes declined from a year ago in the Far North region at 4.9%.

Sales dropped 3.5% in the Central Valley and were down 3% percent in Southern California compared to a year ago.

The Realtors group explained that the drop was due to February having one fewer transaction day compared to February 2024, noting that? sales at the county level are not seasonally adjusted.

How long do houses stay on market in California?

In February it would have taken four months to sell the statewide supply of homes on the market, according to California’s Unsold Inventory Index.

That’s compared to January, when the state inventory index indicated it’d take 4.1 months for all available properties in the state to be bought.

In California, homes were on the market for a median of 26 days before selling in February, the Realtors group said.

That’s up from 22 days in January.

Where are cheapest counties to buy a home in California?

In February, the most affordable housing in California could be found in the Far North, where the median sales price for a single-family home was $386,000, according to the California Association of Realtors’ report.

That’s up from $379,000 in February 2024.

Here are five California counties where housing prices were below the statewide average in February.:

Trinity County

• Median sold price of existing single-family homes: $115,000
• Region: Far North

Lassen County

• Median sold price of existing single-family homes: $284,000
• Region: Far North

Siskiyou County

• Median sold price of existing single-family homes: $285,000
• Region: Far North

Glenn County

• Median sold price of existing single-family homes: $335,000
• Region: Central Valley

Tehama County

• Median sold price of existing single-family homes: $360,000
• Region: Far North

Lake County

• Median sold price of existing single-family homes: $352,000
• Region: Northern California

Which California counties have most expensive housing prices?

According to the Realtors group, California’s most expensive home prices could be found in the Bay Area.

In February, the median sale price for a single-family home in the Bay Area was $1.2 million, up from $1.1. million in January.

The Central Coast had the second-highest home prices, with a median home sale price of about $1 million.

The five California counties with the highest home prices in February were all in the Bay Area:

• San Mateo County: $2.2 million median sale price for existing single-family home
• Santa Clara County: $2 million
• Marin County: $1.67 million
• San Francisco County: $1.6 million
• Alameda County: $1.3 million

What’s next for California real estate trends?

In February, active home listings across California were at a four-month high, according to the Realtors group.

That marked the 13th consecutive month of annual gains in housing supply.

“The strong year-over-year growth continues to be an encouraging sign for the market, especially for buyers,” the real estate organization said.

Although California home sales in February were considered “below historical averages,” the increase in the number of homes sold that month marks an “encouraging shift in the market,” the report said

“Despite ongoing economic and policy uncertainties, mortgage rates are expected to stabilize later this year,” said Jordan Levine, California Association of Realtors senior vice president and chief economist. “As a result, the housing market is likely to see continued improvement through the second and third quarters of 2025.”

This story was originally published April 11, 2025 at 11:12 AM with the headline "CA sees highest home sales in years as market rebounds. What’s behind the surge?."