Southern California home sales crash. Are there more signs of cracks in the economy?

The info is coming from a CNBC article, which can be sensational in their headlines, but there is some real concrete data revealed that make me wonder if this is real, what the reasons are for this, and if this is part of a forming trend?

“In the past, California, one of the largest housing markets in the nation, has been a predictor for the rest of the country. Home prices have been rising everywhere, amid a critical housing shortage. Prices usually lag sales by several months, and sales are beginning to crumble, even as more inventory comes on the market. The supply of homes for sale increased annually in June for the first time in three years, according to the National Association of Realtors, but sales fell for the third straight month”

Prices aren’t just absurb in California. They are absurd in many cities. Look at Nashville in recent years. Look at Vegas. This trend is going to be everywhere as we are potentially seeing a normalization in growth.