Sales also posted an increase of 9.8 percent in February 1998 compared to the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. The number of days it took to sell a single-family home in the San Francisco Bay Area declined to 34 days in February 1998 from 48 days in February 1997. Unsold inventory is low and homes are selling quickly.
All indicators point to continuing, substantial home price appreciation in the coming months.
Sales also posted a double-digit increase of 18.2 percent in February 1998 compared to the same period a year ago. Sales in Southern California's most populous county climbed 9.1 percent in February 1998 compared to the same period a year ago. C.A.R. is headquartered in Los Angeles. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.