Home prices in the city of Los Angeles rose slightly in February compared to the previous month, and higher than housing prices one year ago, the California Association of Realtors announced Tuesday.
The $824,000 median price of an existing single-family home last month reflected a 0.6% increase from January’s $820,000 sales price in the L.A. metro area. The February figure was a 4.4% increase from $790,000 one year ago, according to the report.
In Los Angeles County, $852,190 was required to purchase a single-family home last month, a 3.9% decrease from January. A year ago, $817,100 was the cost of a single-family home, CAR said.
Home prices in Orange County also increased last month, from $1.43 million in January to $1.46 million in February. In February 2024, the same home cost $1.35 million, according to the survey.
Riverside County saw a 0.3% increase to $646,840 for a single-family home in February, from $645,000 in January. The price one year ago was $624,900, CAR stated.
February’s statewide median home price was $829,060, down 1.2% from January but up 2.8% from $806,480 in February 2024. Year-to-date statewide home sales edged up 2.6%, the survey said.
Also statewide, CAR noted, California’s pending sales in February dipped from last year’s level for the third consecutive month, but the drop was much smaller than the decline observed in January. The sales dip of homes in escrow could be due in part to a jump in mortgage rates at the beginning of February, but the public’s growing concern of a recession may also have played a role in the slowdown in housing demand in recent weeks, the report said.
The February statewide median price increased on a year-over-year basis for the 20th straight month, but the gain recorded was the smallest since July 2023, according to CAR.
On a month-to-month basis, the February median price dipped from the prior month, and the monthly drop was larger than the 10-year historical average dip of 0.7% recorded between the two months. The downward trend in the statewide median price will likely reverse in the coming months, however, as home prices typically begin rising in March and continue climbing until the end of the homebuying season in August, according to the report.
“California home sales rebounded strongly in February after a sluggish start to the year, supported by increased buyer activity and more available homes on the market,” CAR President Heather Ozur said in a statement.
“Lower borrowing costs made homeownership more accessible to buyers who were previously sidelined by affordability challenges, while 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.”
The median number of days it took to sell a California single-family home was 26 days in February, up from 22 days in February 2024.