California's 2 biggest luxury housing markets are sharply diverging

San Francisco's luxury housing market is thriving, with buyers outnumbering sellers by 11.7%, 85% of single-family homes selling above asking price, and sales up 14.7% year over year. In contrast, Los Angeles faces a slowdown, with sellers outnumbering buyers by 63.2%, longer market times, and a 7.3% sales decline. San Francisco's growth is driven by AI-related economic expansion and limited inventory, while Los Angeles struggles with high interest rates, taxes, and a mixed economy.