Business is booming.

Lower interest rates fuel California home sales to a five-month high


In a positive sign for the California real estate market, home sales in the state rose to an annualized rate of over 250,000 for the third consecutive month in February, thanks to more favorable interest rates.

The California Association of Realtors (CAR) reported that closed escrow sales of existing, single-family detached homes in the state totaled a seasonally adjusted annualized rate of 284,010 in February, up 17.6% from January and the highest level in four months.

According to CAR, the favorable interest rates, the lowest in five months, helped to buoy the market, even as prices continued to soften. In February, California’s median home price declined for the sixth straight month, falling 2.1% to $735,480, the lowest level in two years. The median price has fallen 18.3% from its recent peak of $900,170 in May 2022, and the market is expected to see larger price drops in the coming months.



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