March outlook from the California Association of Realtors

Consumers have been feeling positive about buying and selling since the start of the year, and the latest housing market report released by C.A.R. reflected the improvement in optimism. Both supply and demand increased in February and the competitiveness of the market appeared to be heating up as we entered the spring homebuying season. With the inflation data coming in stronger than expected in the past couple of weeks, rates began to trend up again, which could create some headwinds for homebuyers in the near term. While the market may see more moderate sales in March, housing demand should pick back up in the later part of the home buying season as inflation shows more signs of easing and rates begin to trend down again.