Published · By Jeff Brick, 2026 SDMLS President
In our previous post, we explored why an increasing number of San Diego homeowners are choosing to pull their listings and wait for projected 2027 rate drops. But if sellers are hitting the pause button, it raises a crucial question for the other side of the transaction:
Why are buyers still actively writing offers, competing, and closing on San Diego homes right now?
Despite interest rates remaining in the mid-to-high 6% range and public inventory shrinking, motivated buyers are not sitting on the sidelines. In fact, well-priced homes in desirable neighborhoods like North Park, Carmel Valley, and Eastlake are still securing multiple offers and closing in record time.
Here is a look behind the scenes at the four major forces driving San Diego buyers to take action today rather than wait.
1. “Marry the House, Date the Rate” (The Refinance Play)
Today’s buyers are far more financially savvy about mortgage mechanics than previous generations. They realize that a mortgage rate is not a permanent sentence—it’s a temporary financing tool.
- The Logic: If you find the right home in the right neighborhood today, you can secure the asset now. When mortgage rates inevitably drop toward the projected 5.9% range into 2027, you simply refinance your loan to lower your monthly payment.
- The Risk of Waiting: If you wait until rates drop to buy, millions of other sidelined buyers will jump back into the market at the exact same time. The resulting frenzy will drive home prices up far faster than the interest savings would offset.
2. The Equity Wave: Equity Rich & Cash Strong
A large portion of San Diego’s current buyer pool isn’t made up of first-timers struggling to scrape together a 3% down payment. They are existing homeowners rolling massive equity from previous sales, equity-rich relocations, or tech and biotech professionals with strong liquidity.
For buyers putting down 30%, 40%, or even paying all cash, interest rate fluctuations have a significantly muted impact on their monthly lifestyle. They view San Diego real estate as a long-term wealth store and a hedge against inflation.
3. Local Program Secrets: Leveraging Credits & Concessions
Smart buyers aren’t paying full freight on interest rates—they are using strategic incentives to neutralize them.
Right now, many buyers are taking advantage of lesser-known programs, such as exclusive $10,000 purchase credits in select San Diego neighborhoods like North Park, or negotiating seller-paid 2-1 rate buydowns.
A 2-1 buydown drops a buyer’s effective interest rate by 2% in year one and 1% in year two, giving them immediate payment relief during the exact window while they wait for rates to settle long-term.
4. Accessing the “Hidden” Market via Private Networks
While public MLS inventory looks thin, serious buyers know that properties are still trading hands behind the scenes.
By aligning with agents who have deep roots in Private Listing Networks (PLNs) and “Office Exclusive” databases, active buyers are gaining access to homes before they ever hit Zillow or Redfin. This allows them to make clean, stress-free offers without fighting 15 other buyers in an open-market bidding war.
The Bottom Line for Buyers and Sellers
- For Buyers: Buying today allows you to negotiate terms, request repairs, and utilize buydown credits without the chaos of a 2027 bidding war.
- For Sellers: You don’t have to wait until 2027 to get top dollar. High-intent, well-capitalized buyers are actively looking for turn-key homes right now.
FAQ
Why are San Diego buyers still buying homes with mortgage rates in the 6% range?
In 2026, San Diego buyers are still acting for four main reasons: many plan to refinance when rates drop toward the projected 5.9% range into 2027, many are equity-rich or all-cash buyers, many use incentives like purchase credits and 2-1 rate buydowns, and many find homes through Private Listing Networks before they reach Zillow or Redfin.
What is a 2-1 rate buydown?
A 2-1 buydown drops a buyer’s effective interest rate by 2% in year one and 1% in year two. In 2026, many San Diego buyers are negotiating seller-paid 2-1 buydowns to get immediate payment relief while they wait for rates to settle.
Should I wait until 2027 to buy a home in San Diego?
As I see it, if you wait until rates drop, millions of sidelined buyers will jump back in at the same time, and that frenzy will drive home prices up far faster than the interest savings would offset. Buying in 2026 lets you negotiate terms, request repairs and use buydown credits without the chaos of a 2027 bidding war.
Are homes in North Park and Eastlake still getting multiple offers in 2026?
Yes. In 2026, even with rates in the mid-to-high 6% range, well-priced homes in North Park, Carmel Valley and Eastlake are still securing multiple offers and closing in record time.
Ready to explore off-market inventory or learn how to leverage rate-buydown credits on your purchase? Reach out today to get connected with the latest San Diego listings and strategy!
