The U-6 level of unemployment in CA is probably ~20% at this point. I doubt any of these people are buying houses. But, out of the 80% still employed and getting paid enough to obtain a home loan, prices have come way down at the low-end tier.(And the govt is making the money side of the deal about as good as they ever have in history.) These were people that were priced-out of this market until about a year ago.
It’s a classic reaction of pent-up demand purchasing. Considering how many people now work for the govt, especially at the federal level, they dont get paid a lot, but they know their job is far more stable/safe than the private sector.