The Market and Industry: Buyer demand remains strong

California home sales remained on an upward trend during the first week of March. Growth is expected to accelerate as we approach the one-year anniversary of the first COVID lockdown in California, where home sales began to drop off last year. Preliminary data suggests a double-digit increase in the number of PEAD forms filed in February versus January, indicating strong buyer demand. Meanwhile, mortgage demand stalled following a modest hike in interest rates.

A new study by the California Policy Lab revealed a 30 percent increase in people moving out of San Francisco compared to 2019. For many, COVID and the sudden availability of remote work accelerated their decision to move. The Bay Area exodus, fueled by high home prices and not enough housing to meet demand, has fired up housing markets in the Central Valley.

Sources: C.A.R. Research & Economics, The Mercury News, The San Francisco Chronicle, CNBC