Coronado has once again secured its place among the nation’s most coveted real estate markets.
In a newly released report by the real estate research company PropertyShark, the 92118 ZIP code ranks 57th on the list of 100 most expensive places to own a home in the United States, with a median sale price of $2.4 million.
California ZIP codes dominated the list, accounting for 66% of the top 100.
Steven Thomas, chief economist at Reports on Housing, sees Coronado’s unique charm and beaches as the driving force behind its housing prices.
“There are only so many homes in a very desirable area,” he said via email.
San Diego County boasts five other ZIP codes on PropertyShark’s report, with Rancho Santa Fe ranking 9th and Del Mar ranking 40th on the list.
PropertyShark reported that the median home sale price for the county was $890K.
However, Coronado remains in demand despite competition from other luxury markets.
“Currently, Del Mar is a much hotter market than Coronado. Yet, Rancho Santa Fe, the most expensive area in San Diego County, is very slow,” Thomas said. “The hotter markets are determined by the number of homes on the market that are not yet pending sales in addition to the number of recent pending sales. When fewer homes are on the market and more homes are pending, the market is hotter.”
The shift in how fast the market is moving, the speed of the market or how fast they are selling, he explained, often sees top-ranking luxury areas move in and out of favor over the year.
A tight supply of homes, both locally and nationally, has compounded the demand. San Diego County, like much of the U.S., faces a chronic shortage of available housing.
“We see the real estate market eventually heating up as the Federal Reserve continues their rate-cutting cycle,” Thomas said. “It will have a huge impact on both supply and demand.”
On Sept. 18, the Federal Reserve made its first rate cut in more than four years, lowering the federal funds interest rate by 50 basis points, a basis point representing 0.01%.
The last time the Fed reduced rates was in March 2020, amid the pandemic.
In Coronado, the higher rate environment has slowed buyer activity among those relying on loans.
However, Thomas said that cash buyers, unaffected by rate fluctuations, continue to dominate the luxury market, maintaining interest in Coronado properties.
With no significant corrections forecasted, Thomas said he expects housing values to continue rising, driven by the supply shortages.
“The housing stock — all homes combined, all homeowners — is too strong and far too resilient, insulating it from major downturns,” he said. “Instead, we see trendlines that point to more appreciation based on the chronic lack of supply in San Diego County and across the country.”
