The housing boom has everything to do with supply and demand, and those fundamental features are not going to change anytime soon.

Just like the national housing market trends, the tight inventory and low mortgage rates are fueling the rise in California home prices. While this kind of price appreciation impacts housing affordability, higher home prices will hopefully encourage more sellers to list their homes for sale, which would in turn reduce the rate of appreciation.

There have been years where sunny Southern California sees very little rain. Sometimes those years accumulate, and the drought becomes severe.