US Monthly Market Review - February 2024

Home sales in California remained resilient in February despite rising mortgage rates. The statewide annualized home sales pace jumped 12.8% higher from January to 290,020 units, though it remained below the 300,000 threshold for the 17th consecutive month. The statewide median home price rose 9.7% year-over-year to $806,490, the eighth straight month of annual price increases.

Nationally, home prices climbed 6.7% from a year earlier in February, similar to the 6.9% average annual gain in the years before the pandemic. This indicates home price growth has returned to pre-pandemic levels after a volatile period. Mortgage rates remain elevated but less volatile, helping to stabilize price growth.

However, home prices fell month-over-month in six of the 50 largest U.S. metro areas, particularly in pandemic boomtowns like Tampa, San Antonio, and Portland. This suggests the housing market is cooling in some overheated areas.

Overall, the U.S. housing market appears to be normalizing, with sales and price growth moderating from the frenzy of the pandemic period. Tight inventory is still supporting prices, but affordability remains a challenge for many buyers with elevated mortgage rates.