10/07/2026
C.A.R.’s 2027 California Housing Market Forecast is here to help you strategize your business efforts for the coming year.
Here are highlights of the forecast for next year:
Existing, single-family home sales are forecast to total 277,900 units in 2027, an increase of 3.7% from 2026’s projected sales pace of 268,100.
California’s median home price is forecast to rise 1.4% to $894,400 in 2027, following a projected 0.8% increase to $882,200 in 2026 from 2025’s $875,600.
Housing affordability (the percentage of households who can afford to purchase a median-priced home) is expected to remain unchanged at 20% next year after increasing to a projected 20% in 2026 from 19% in 2025.
The average 30-year, fixed mortgage interest rate will remain at 6.6% in 2027 for the third straight year. While next year’s projected average for the 30-year fixed mortgage interest rate will still be higher than the levels seen in the few years before the pandemic, it will be lower than the long-run average of 7.7% in the past 50 years.
With modest home price growth, stable affordability and improving inventory conditions, the market is expected to offer more opportunities for both buyers and sellers in the year ahead.
To read more details on the 2027 California Housing Market Forecast, visit on.car.org/3UdVZgz.
