Real median household incomes have been falling consistently for the past 4 years. Falling rates is the only way to make housing more affordable for home buyers. If that reverses, you have a big problem with housing affordability once again.
cash is misleading the stats are showing that 50% of the home being bought in CA are by investors. Some for flips some to turn into rentals. Many investors call their offers cash because they know they should not make it contingent on an appraisal. Also many investors are getting hard money for fix and flips... most of the time you call those cash offers as well.