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When it comes to San Diego housing, the question on everyone’s mind is: can things actually improve by 2027? As someone who has spent years helping buyers, sellers, and investors navigate our local market, I see firsthand that affordability is still the biggest hurdle. Home prices here demand substantial incomes, even as the wild price swings of recent years have started to settle down. Zillow’s latest data backs this up, showing that annual price movement is now relatively limited—a sign that we’re stabilizing, not entering another rapid growth cycle. For San Diegans, even a small drop in mortgage rates could make a real difference, given how much every dollar counts in California’s pricier neighborhoods. Ultimately, much of the 2027 outlook will hinge on improvements in affordability, continued job strength, and whether we see more homes coming on the market to meet steady demand. As always, my goal is to help clients make sense of these shifts and approach the market with confidence and clarity.

Over the past decade, we’ve seen the average new single-family home in the U.S. shrink from 2,700 to 2,400 square feet, even as the price per square foot has jumped about 72%. In 2025, a quarter of new homes sold were under 1,800 square feet—up from just one in six ten years ago. Meanwhile, homes 3,000 square feet or larger have become less common, dropping from about one in three sales to one in five. Builders are focusing on smaller designs to help manage rising land, labor, and material costs, which helps keep overall prices somewhat in check—especially with mortgage rates hovering between 6% and 7%.

For buyers, especially those watching their budgets or purchasing for the first time, these smaller homes may mean a more manageable down payment and monthly payment. But it’s worth noting that the higher price per square foot means affordability is still a challenge in many markets. As someone who values straight answers and practical guidance, I always encourage buyers to look closely at how these trends affect their options and long-term plans. My goal is to help you feel comfortable and confident as you navigate these shifts in the market.

The Fed has just raised its key rate by 0.25%, bringing it to 3.75%-4%—the first increase since July 2023. With inflation still above the 2% target, officials are signaling there could be another hike before year’s end. The next meeting is set for October 27-28, 2026, when they’ll take another look at inflation and the broader economy.

For those of us navigating the San Diego real estate market, these rate changes can have a real impact on everything from mortgage rates to buyer demand. As someone who’s seen how these shifts play out locally, I know how important it is to stay informed and ready to adapt. Whether you’re thinking about buying, selling, or investing, understanding how these moves affect your plans is a key part of making confident, comfortable decisions. My goal is always to keep you in-the-know and help you chart the best path forward, no stress and no surprises.

Every year, timing can make a real difference for homebuyers—and 2026 is shaping up to offer a prime window from September 27 to October 3. During this week, buyers could benefit from a national surge in active listings—up 31.9% from the start of the year and 13.3% above the average week—giving you more options than usual across the country. Listing prices are expected to dip about 3.5% below their seasonal peak, which could translate to roughly $14,000 in savings on a median US home price of $416,000. Competition should also ease, historically dropping 30.1% from the year’s peak, and homes are projected to spend about 64 days on the market—meaning you’ll have a bit more time to weigh your decisions. As someone who values straightforward advice and a stress-free buying experience, I always encourage clients to keep an eye on market rhythms like these. With listings growing and demand softening in early fall, buyers have a unique chance to broaden their choices, while later in the season may offer more price flexibility. It’s all about making informed decisions—on your terms, and in your time.

San Diego’s housing market continues to show steady upward momentum, and as someone who’s spent years guiding clients through every kind of market here, I see the same story unfolding through late 2026: prices are projected to keep rising, but at a more manageable, sustainable pace than what we’ve seen in recent years. Strong buyer demand—thanks to San Diego’s lifestyle appeal and some relief on mortgage rates—means homes are still moving, especially when they’re priced right. With inventory staying tight, competition isn’t letting up; well-presented properties are selling quickly and often close to asking price. What’s especially notable right now is the strength in the mid-to-upper price ranges, with high-end and move-up buyers driving much of the activity. Whether you’re thinking about buying, selling, or just want to understand what these trends mean for your next step, a grounded perspective and honest answers can make all the difference in navigating our local market.