California's real estate market signals major shift. Active listings in March hit their second-highest level in a decade as mortgage rates surged back to 6.4%, crushing buyer demand. Silicon Valley saw listings jump 97% year-over-year to record levels, while Los Angeles County listings rose 63% from last year. The inventory buildup reflects a fundamental market correction, not increased seller activity. Home prices that soared during pandemic-era sub-3% mortgage rates have become disconnected from market fundamentals. With demand down 25-35% compared to pre-pandemic levels, properties are sitting longer on the market. This represents a significant cooling in one of America's most expensive housing markets.
