Back Home2026 San Diego Real Estate Market
The San Diego real estate market in early 2026 is characterized by resilient pricing, tight inventory, and a return to more normalized conditions compared to the post-pandemic frenzy. The overall market is generally considered a seller’s market, although it is balanced in some price segments, with buyers gaining slightly more negotiation power and time for due diligence. For detached single-family homes, the median sales price in December 2025 reached $1,050,000, reflecting a 5.0% year-over-year increase. The median price for attached homes (condos/townhomes) was $680,000, a 3.0% year-over-year rise. Despite high price points, the market remains active due to strong underlying demand, a robust local job market in tech and biotech, and persistent housing supply constraints.
Inventory continues to be a major factor shaping the market, as active listings remain chronically low. As of December 2025, the months of supply were very tight at approximately 1.3 months. This limited supply, largely a result of the “lock-in effect” where current homeowners are reluctant to sell their homes with low existing mortgage rates, helps maintain price stability and prevents a significant market downturn. Homes are spending a bit longer on the market compared to previous peak periods, with a median of 44 days for detached homes and 38 days for attached homes in December 2025, suggesting a less frenetic pace and more measured buyer behavior.
Looking ahead to the rest of 2026, the market is expected to see modest, sustainable price appreciation and an increase in sales volume. The key driver for this anticipated activity is the gradual cooling of mortgage rates, with forecasts suggesting the 30-year fixed rate may hover around or dip below the psychological 6% threshold, which could “unlock” pent-up buyer demand. The market rewards strategic planning for both buyers and sellers, with an emphasis on accurate pricing, excellent property condition, and leveraging expert counsel. Overall, the San Diego real estate market is expected to remain healthy and competitive, driven by strong regional fundamentals and limited supply
