Incremental improvements continue to be evident in the movement of Los Angeles homes for sale, as transactions increased during the month of February.
Data released by the California Association of REALTORS found that sales increased more than 2 percent from January to February, while sales were also up more than 5 percent from the year before. However, at the same time, the median home price was down 1.7 percent from February 2011 and 0.6 percent from January.
CAR President LeFrancis Arnold said while the decline in prices was somewhat negative, it also represented the smallest loss in more than a year.
"This may be a signal of a possible stabilization in home prices, which should bode well for prospective buyers who have been on the sidelines waiting for prices to level out and may entice them to jump into the market," said Arnold.
Continued low mortgage rates may also motivate buyers to take advantage of current conditions. Data released by Freddie Mac last week showed the average interest rate for a 30-year fixed-rate loan was just 3.92 percent.