Home sales have plummeted in California over the past few years and are now down 37 percent from their pandemic peak, according to data from real estate analytics platform Reventure App.

Real estate analyst Nick Gerli, Reventure's CEO and founder, said that this plunge in sales indicates "a massive homebuyer strike underway in California right now" which is likely the result of how expensive the Golden State market has gotten over the past five years.

Falling Sales and Rising Inventory

While the California housing market remains competitive—with homes for sale spending an average 31 days on the market before going under contract, less than the nationwide median of 38—and home prices are still rising, buyers in the state are clearly withdrawing.

According to the latest Redfin data, home sales in California totaled 24,895 in May, down 7.9 percent...