California Home Sales Forecast to Rise 3.7% in 2027
C.A.R. projects 277,900 existing single-family home sales in 2027, driven by modest price growth and stable affordability.
The California Association of Realtors has released its 2027 housing market forecast, projecting a moderate but measurable rebound in home sales activity across the state. Existing single-family home sales are expected to reach 277,900 units in 2027, a 3.7 percent increase from the 268,100 units projected for 2026.
The forecast attributes the anticipated sales growth to a combination of modest price appreciation and relatively stable affordability conditions — two factors that have constrained the California market through recent years of elevated mortgage rates and inventory shortages. The outlook suggests the market may be finding firmer footing after a prolonged period of suppressed transaction volume.
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California's housing market has been among the most closely watched in the nation, given its outsized influence on national real estate trends and its persistent affordability challenges. A 3.7 percent annual gain in unit sales, while incremental, would represent a continuation of a gradual recovery trajectory that industry observers have been monitoring since the post-pandemic rate shock cooled demand sharply.
Analysts note that even with projected improvement, California sales volumes remain well below historical norms, underscoring how structurally constrained the market remains. Any meaningful acceleration would likely depend on mortgage rate relief and sustained growth in available inventory — neither of which is guaranteed in the current macroeconomic environment.
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