Bay Area Home Sales Surge 44% in February, Signaling CA Recovery

SAN FRANCISCO — The Bay Area real estate market roared back to life in February 2026, with home sales jumping 44.1% from January and 4.0% from the previous year, according to market data from Norada Real Estate.[2] The region's median home price soared to $1.285 million, a 14.0% increase month-over-month and 2.8% year-over-year, driven by mortgage rates dipping to 6.05% — down from 6.84% in February 2025.[2] Inventory tightened further to a scant 2.8 months of supply, down from 3.5 months in January, intensifying competition in tech-heavy counties.[2] San Francisco led the charge with median prices leaping 23.5% year-over-year and 19.5% month-over-month, while San Mateo homes flew off the market in just 9 days and Santa Clara in 8 days.[2] Santa Clara County's unsold inventory index hit 1.6-2.4 months, underscoring insatiable demand from the Silicon Valley workforce.[2] Statewide, California home sales rose 7.0% from January, with the median price edging up 0.9% to $830,370, as lower rates injected adrenaline into buyer activity.[2] This February boom follows a mixed 2025, where statewide existing home sales ended the year up 0.9% from 2024 and median prices rose 1.2%, per the California Association of Realtors.[4] Bay Area sales posted a modest 2% annual gain in December 2025, bucking earlier declines like November's 3.5% year-over-year drop.[3][4] C.A.R. President Tamara Suminski hailed the momentum: "As price growth eased and mortgage rates fell to near-three-year lows, the stage is set for a more optimistic 2026."[4] Experts forecast moderate price appreciation through 2026-2027, propelled by tight inventory and resilient demand despite affordability hurdles.[2] While winter typically cools sales, the Bay Area's rebound phase — marked by a 3% median price rise from August to September 2024 — suggests sustained recovery as economic conditions improve.[1]