92127 Real Estate Market Update: Low Inventory, Shifting Prices, and the Big Impact of Sub‑6% Mortgage Rates
by Bernie Linden
If you live in Del Sur, 4S Ranch, Santaluz, Westwood, Rancho Bernardo, or any of the surrounding 92127 neighborhoods, the end of 2025 delivered one of the most interesting real estate moments we’ve seen in years. Inventory has tightened dramatically, prices have shifted in unexpected ways, and—perhaps the biggest headline of all—mortgage rates have officially dipped below 6%, sparking new energy among both buyers and sellers as we head into 2026.
Whether you’re planning to buy, sell, or simply keep an eye on your home’s value, the trends unfolding right now in 92127 are worth paying attention to.
Record-Low Inventory: December Listings Hit a 4-Year Low
December closed with just 29 active listings, the fewest we’ve seen since December 2021. This wasn’t a one‑month anomaly—both November (17 new listings) and December (15 new listings) posted the lowest number of new listings since late 2023.
For homeowners, this means one thing: Your competition is extremely limited.
For buyers, it means something else entirely: Patience and preparation matter more than ever.
Low inventory has always been a defining feature of 92127, but this level of scarcity is unusual even by local standards. Homes that are priced correctly and presented well continue to draw strong interest, even in a cooling price environment.
Average Sales Price: A Market Reset After 2024’s Peak
Here’s how December’s average sales price stacked up over the past five years:
2025: $2.01M
2024: $3.70M (all‑time high)
2023: $1.84M
2022: $1.76M
2021: $1.39M
After the record‑breaking surge in 2024, the 2025 numbers reflect a market that has recalibrated. Prices remain significantly higher than pre‑pandemic levels, but the frenzy has cooled—and that’s creating opportunities for buyers who were previously priced out.
Price Per Square Foot: A 15‑Month Decline Reaches a New Low
One of the most telling indicators of market momentum is the average price per square foot sold. In 92127, this metric has now:
Hit its lowest point since February 2023
Declined 27% since June 2025
Fallen for nearly 15 consecutive months (excluding June 2025’s spike)
This trend suggests that while demand remains steady, buyers are becoming more price‑sensitive—and sellers need to be strategic about pricing and presentation.
Current Inventory Snapshot (as of January 9, 2026)
There are 33 homes for sale across 92127, ranging from:
$1,425,000 to $10,900,000
Average list price: $3.47M
Average list price per square foot: $791/SF
December’s closed sales ranged from:
Highest: $5,500,000 ($708/SF)
Lowest: $1,325,000 ($686/SF)
This spread reflects the diversity of the 92127 market—from luxury estates in Santaluz to family homes in Del Sur and 4S Ranch.
The Game-Changer: Mortgage Rates Drop Below 6%
After two years of elevated borrowing costs, mortgage rates dipping below 6% is a major turning point. And in a high‑demand market like 92127, the ripple effects are already being felt.
What This Means for Buyers
Increased affordability: Even a 0.5% drop in rates can translate into hundreds of dollars saved per month.
More purchasing power: Buyers who were capped at one price point may now qualify for more.
Competition is likely to increase: As rates fall, more buyers re‑enter the market—especially move‑up buyers who were waiting for better financing conditions.
If you’re planning to buy in 2026, getting pre‑approved early and staying close to the market will give you a real advantage.
What This Means for Sellers
More qualified buyers: Lower rates expand the buyer pool, especially in higher‑priced neighborhoods like Santaluz and The Lakes.
Better showing activity: Homes that were quiet in Q4 may see renewed interest in Q1.
Opportunity to time the market: With inventory at a multi‑year low, sellers who list early in 2026 may benefit from a sweet spot—low competition + rising buyer demand.
For homeowners who have been on the fence, this shift in rates could be the catalyst that makes listing worthwhile.
What’s Next for 92127?
The combination of record‑low inventory, softening prices, and improving mortgage rates sets the stage for a dynamic spring market. Buyers will have more financial breathing room, and sellers will benefit from renewed demand—especially if they price strategically and present their homes well.
92127 remains one of the most desirable zip codes in San Diego County, and the long‑term fundamentals—schools, amenities, lifestyle, and community—continue to drive strong interest from local and out‑of‑area buyers.
Thinking About Buying or Selling in 2026?
If you’re curious about your home’s value, want a deeper look at neighborhood‑specific trends, or would like to tour any of the homes currently on the market, I’m always here as a resource.
Real estate is hyper‑local, and the best decisions come from understanding both the data and the story behind the data. Let’s talk about what today’s market means for your goals.
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92127 Real Estate Market Update: Low Inventory, Shifting Prices, and the Big Impact of Sub‑6% Mortgage Rates
If you live in Del Sur, 4S Ranch, Santaluz, Westwood, Rancho Bernardo, or any of the surrounding 92127 neighborhoods, the end of 2025 delivered one of the most interesting real estate moments we’ve seen in years. Inventory has tightened dramatically, prices have shifted in unexpected ways, and—perhaps the biggest headline of all—mortgage rates have officially dipped below 6%, sparking new energy among both buyers and sellers as we head into 2026.
Whether you’re planning to buy, sell, or simply keep an eye on your home’s value, the trends unfolding right now in 92127 are worth paying attention to.
Record-Low Inventory: December Listings Hit a 4-Year Low
December closed with just 29 active listings, the fewest we’ve seen since December 2021. This wasn’t a one‑month anomaly—both November (17 new listings) and December (15 new listings) posted the lowest number of new listings since late 2023.
For homeowners, this means one thing:
Your competition is extremely limited.
For buyers, it means something else entirely:
Patience and preparation matter more than ever.
Low inventory has always been a defining feature of 92127, but this level of scarcity is unusual even by local standards. Homes that are priced correctly and presented well continue to draw strong interest, even in a cooling price environment.
Average Sales Price: A Market Reset After 2024’s Peak
Here’s how December’s average sales price stacked up over the past five years:
After the record‑breaking surge in 2024, the 2025 numbers reflect a market that has recalibrated. Prices remain significantly higher than pre‑pandemic levels, but the frenzy has cooled—and that’s creating opportunities for buyers who were previously priced out.
Price Per Square Foot: A 15‑Month Decline Reaches a New Low
One of the most telling indicators of market momentum is the average price per square foot sold. In 92127, this metric has now:
This trend suggests that while demand remains steady, buyers are becoming more price‑sensitive—and sellers need to be strategic about pricing and presentation.
Current Inventory Snapshot (as of January 9, 2026)
There are 33 homes for sale across 92127, ranging from:
December’s closed sales ranged from:
This spread reflects the diversity of the 92127 market—from luxury estates in Santaluz to family homes in Del Sur and 4S Ranch.
The Game-Changer: Mortgage Rates Drop Below 6%
After two years of elevated borrowing costs, mortgage rates dipping below 6% is a major turning point. And in a high‑demand market like 92127, the ripple effects are already being felt.
What This Means for Buyers
If you’re planning to buy in 2026, getting pre‑approved early and staying close to the market will give you a real advantage.
What This Means for Sellers
For homeowners who have been on the fence, this shift in rates could be the catalyst that makes listing worthwhile.
What’s Next for 92127?
The combination of record‑low inventory, softening prices, and improving mortgage rates sets the stage for a dynamic spring market. Buyers will have more financial breathing room, and sellers will benefit from renewed demand—especially if they price strategically and present their homes well.
92127 remains one of the most desirable zip codes in San Diego County, and the long‑term fundamentals—schools, amenities, lifestyle, and community—continue to drive strong interest from local and out‑of‑area buyers.
Thinking About Buying or Selling in 2026?
If you’re curious about your home’s value, want a deeper look at neighborhood‑specific trends, or would like to tour any of the homes currently on the market, I’m always here as a resource.
Real estate is hyper‑local, and the best decisions come from understanding both the data and the story behind the data. Let’s talk about what today’s market means for your goals.