California Housing Market Forecast 2027 | San Diego & Coronado Real Estate

What Buyers and Sellers in San Diego Should Know

After several years of high mortgage rates, limited inventory, and cautious buyers, California's housing market may finally be moving toward a healthier balance.

The California Association of REALTORS® (C.A.R.) recently released its 2027 Housing Market Forecast, and the outlook is cautiously optimistic. Home sales are expected to increase, prices should continue to appreciate modestly, and buyers may see a little more inventory to choose from.

A Look at the Numbers

According to C.A.R.'s forecast for 2027:

• Home sales: Expected to increase 3.7% statewide.

• Median home price: Projected to reach $894,400, a 1.4% increase over 2026.

• Mortgage rates: Expected to average 6.6% for a 30-year fixed loan.

• Housing affordability: Only 20% of California households are expected to be able to afford a median-priced home.

While these numbers don't suggest a dramatic market rebound, they point toward something we haven't seen much of lately: greater stability.

What Does This Mean for San Diego and Coronado?

Our coastal communities have some unique characteristics that distinguish them from the broader California market. Desirable locations, limited land for new construction, and consistent lifestyle appeal continue to support property values, particularly in established neighborhoods like Coronado, La Jolla, and other coastal areas.

For buyers, a gradual increase in available homes could mean more choices, less pressure to make rushed decisions, and potentially better negotiating opportunities. Waiting for a significant drop in prices, however, may not be the best strategy if values continue to appreciate.

For sellers, well-maintained homes that are priced appropriately should continue to attract interest. Buyers have become more selective, making thoughtful pricing, presentation, and marketing more important than ever.

My Take on the Year Ahead

I see 2027 as a year of opportunity rather than dramatic change.

One of the biggest challenges in our market has been the number of homeowners reluctant to give up their low mortgage rates. As life circumstances change and confidence improves, we may begin to see more of those homeowners making their next move.

Of course, real estate is always local. A statewide forecast is a helpful guide, but market conditions can vary considerably between Coronado, coastal San Diego, and inland neighborhoods.

Thinking about buying or selling in 2027?

Whether you're considering a move, purchasing an investment property, or simply curious about your home's current value, I'd be happy to share what I'm seeing in your particular neighborhood.

Let's talk about your goals and how to make the most of the opportunities ahead.

Source: California Association of REALTORS®, 2027 California Housing Market Forecast, released October 7, 2026. Figures are statewide projections, not San Diego-specific forecasts.

Delmira Sumner | REALTOR®

Coldwell Banker West

Serving Coronado and Greater San Diego

sellingcoronadohomes.com