California's housing market is diverging from national trends. While home sales are down across the U.S., California has seen a 5.1% year-over-year increase—primarily driven by high-end property transactions. However, this growth isn’t uniform. Regions like the Bay Area and Far North are hot, while areas like the Central Valley and Central Coast are still seeing declines. Affordability remains a major issue despite lower mortgage rates, and active listings are rising faster than buyer demand. Price moderation is happening, especially in the luxury tier, while lower-priced homes are appreciating more. The market remains tight, and continued shifts in inventory and rates could swing prices in either direction.