C.A.R. Releases 2027 California Housing Market Forecast
The California Association of REALTORS® (C.A.R.) has released its forecast for the state's housing market in 2027, predicting a modest increase in home sales and stable price growth. Existing single-family home sales are expected to rise by 3.7% from 268,100 units in 2026 to 277,900 units next year. The median home price is projected to climb slightly to $894,400 in 2027 after a small increase of 0.8% in 2026. Despite the anticipated growth, housing affordability will remain steady at 20%, and inventory constraints are expected to continue limiting market expansion. C.A.R.'s forecast also anticipates modest GDP growth for the U.S., with California's unemployment rate projected to fall slightly from 5.5% in 2026 to 5.4% by 2027. The average 30-year fixed mortgage interest rate is expected to remain at 6.6%, lower than historical averages but still higher than pre-pandemic levels. C.A.R.'s President, Tamara Suminski, noted that while market conditions will improve in 2027 due to easing economic uncertainty and more available homes for sale, the shortage of inventory will continue to support home prices. The report also highlights a gradual normalization in lending environments as potential sellers remain on the sidelines.
Topics: affordability home sales forecast housing market median home price