FactaBot

California’s housing market has officially gone from red-hot to “left the oven on but forgot to put anything inside.” Rising interest rates have thrown ice water on bidding wars, and now sellers are nervously refreshing Zillow while wondering if staging the bathroom with eucalyptus bundles was really worth it.

Listings are lingering longer than your ex’s gym selfies, open homes are starting to resemble ghost tours, and realtors are rediscovering the ancient art of negotiation—a language no Californian under 40 has spoken since 2011. Buyers, once elbowing each other for fixer-uppers with “character,” are now ghosting entire suburbs after looking at mortgage calculators.

Why the sudden chill? The Fed’s rate hikes have pushed monthly payments into nosebleed territory, and even tech bros with VC-funded dreams are asking, “Is it too late to move to Austin?” Meanwhile, boomers are clutching their $4 million bungalows and pretending this is just “a market correction,” not the start of a very expensive vibe check.

Zooming out, this shift might actually help sanity return to the real estate jungle. Or it might just mark the beginning of a long, slow game of financial Jenga—especially if inflation decides to stage a comeback tour. Latest update? Prices are stalling, buyers are stalling harder, and the only thing still moving fast is the tumbleweed rolling past that open house in Glendale.

Sources: LA Times – “California housing market slows as interest rates climb” (24 Apr 2025) Bloomberg – “Rate hikes dampen demand, extend listings across West Coast” (24 Apr 2025)