Monthly mortgage payments experience the smallest increase in the past 12 months
February saw California’s home sales rebound after hitting the lowest level in over 10 years the previous month, according to the California Association of Realtors (CAR).
February’s annual sales level was the highest in six months, and the monthly growth in sales was the highest since January 2011.
"Lower interest rates and stabilizing home prices motivated would-be buyers to get off the fence in February," said CAR President Jared Martin. "With mortgage rates reaching their lowest point in a year, housing affordability improved as buyers' monthly mortgage payments became more manageable. Instead of the double-digit growth rates that we observed a few months ago, monthly mortgage payments increased by 2.7%, the smallest increase in the last 12 months."
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 399,080 units in February, according to CAR. The statewide annualized sales figure represents what the total number of homes sold during 2019 would be if sales during February pace keep up throughout the year.
February’s sales figure increased 11.3% from the revised 358,470 level in January but was down 5.6% from last year’s home sales of 422,910. The downturn this February was the smallest since July 2018.
The statewide median home price dropped 0.6% to $534,140 in February from a revised $537,120 in January and was up 2.2% from $522,440 in February 2018. February’s price was the lowest since February last year due to seasonal factors, as February typically was the lowest price point for the year.
"While February's sales rebound is welcome news, the market will likely remain constrained as sellers and buyers sort through the realities of today's market. With the market about to kick off its homebuying season, buyers have a window of opportunity in the upcoming months as interest rates remain stable, there are more properties on the market to consider, and prices are more attractive," said Leslie Appleton-Young, senior vice president and chief economist of CAR.
