The Great Housing Freeze

Why California home prices remain stubbornly high even as transaction volume has fallen to historic lows—and what could finally change the market.

California housing is not behaving like a typical slowing market. Owners with low fixed-rate mortgages are reluctant to move, buyers face a severe affordability gap, and construction has not kept pace with household demand. The result is a market defined by limited selection rather than broad price capitulation. For sellers, preparation and price discipline matter more when buyers have less room for compromise.