February’s solid market performance was likely fueled by rising interest rates, which motivated buyers to rush in and close escrow before rates move even higher as they’re anticipated to do in the coming months.
The Southern California market was not as robust as the Bay Area and the Central Valley with an overall sales decline of 2.8 percent when compared to last February. Additionally, all six Southern California counties recorded sales decreases on a year-over-year basis. Ventura County declined the most in the region at 7.1 percent, while Riverside had the smallest at 0.8 percent.
While the price growth in Southern California was not as strong as that of the Bay Area, the increase was still solid. All counties increased on a year-over-year basis by at least 4.5 percent with Los Angeles increasing the most at 12.1 percent. Orange County followed with an 8.1 percent year-over-year increase, surpassing the $800,000 benchmark for the first time and setting a new record high median price ($805,380).
Condo/townhome prices have been growing at a robust pace as well. The statewide condo/townhome median price has been growing faster than that of the existing single-family homes with a 13.3 percent year-over-year increase, as compared to 8.8 percent for existing single-family homes. At $461,400, the statewide condo/townhome median price set a new peak price, exceeding the previous high of $451,450 registered in June 2017.
Source; California Association of REALTORS®: https://www.car.org/en/aboutus/mediacenter/newsreleases/2018releases/feb2018homesales