The Southern California housing market is a challenging one for prospective buyers. Prices are high, mortgage rates have increased, and competition is fierce. Bidding wars are not as prevalent as they were two years ago, but the typical house payment has reached an all-time high, resulting in reduced buying power. Home sales have continued to decline due to the rising mortgage rates and a lack of available inventory, and buyers are facing a decline in lender approval due to the higher mortgage rates. However, the number of offers on homes has decreased, making it a slightly more favorable market for buyers.