For the past few years, buying a home in San Diego felt a bit like trying to get concert tickets to a sold-out show. Very few seats available. Lots of people refreshing the page. And if you hesitated, the ticket was gone.That intense competition defined the housing market for a while. But lately, things are starting to change. More homes are becoming available, mortgage rates have eased, and buyers are finally seeing a little breathing room.
San Diego Market Snapshot – March 2026
- Active homes for sale: about 4,400
- Mortgage rates: around 6%
- Estimated market time: about 69 days
- Inventory trend: slightly increasing year over year
- Buyer activity: slowly improving
More Homes Are Showing Up
The biggest shift this year is simple: buyers have more choices. San Diego County currently has just over 4,400 homes for sale. That’s slightly more than this time last year and significantly higher than the extremely tight inventory levels we saw a couple of years ago.The increase is showing up most in lower and mid-range price points, where supply had been especially limited. More options means buyers can take their time touring homes, compare neighborhoods and features, and negotiate more strategically.
Interestingly, the luxury market is moving a bit differently, with fewer homes available above the $2M mark compared with last year.
Mortgage Rates Are Giving Buyers a Boost
Another factor improving conditions is interest rates. After hovering around the 7% range for quite a while, mortgage rates have recently moved closer to 6%. That difference has a meaningful impact on affordability. Lower rates increase purchasing power, allowing buyers to qualify for higher home prices while keeping the same monthly payment. Even small changes in rates can translate into hundreds of dollars per month in savings.
Buyers Are Moving — Just Carefully
Buyer activity has ticked up recently, but the market still feels more measured than the frenzied pace of the past few years. Many buyers are watching economic headlines closely before making big financial decisions. That means the market is active, but not rushed. Homes are selling, just not overnight.
How Fast Are Homes Selling?
Based on current activity, it would take roughly two months to sell all homes currently on the market at today’s pace. That’s very similar to last year. Detached homes are still moving faster than condos and townhomes, which tend to take longer to find the right buyer. Overall, the market sits in a balanced zone — competitive, but not chaotic.
The Luxury Market Is Slowing Slightly
At the higher end, the market is a bit calmer. Homes priced above $2 million are taking longer to sell than lower-priced properties. Luxury buyers tend to move more deliberately, and with more options available they’re taking the time to find the right fit. For sellers in this price range, pricing strategy and presentation are becoming even more important.
San Diego Market Forecast
Looking ahead through the rest of 2026, the San Diego housing market is expected to continue adjusting gradually. Inventory will likely rise modestly through the spring and summer months as more homeowners test the market.Mortgage rates will remain one of the biggest factors influencing demand. If rates move lower, buyer activity could increase quickly as many households have been waiting on the sidelines for better affordability.
While conditions vary by neighborhood, the overall San Diego housing market is showing signs of stabilization. Communities like Rancho Bernardo, Del Sur, Poway, Carmel Valley, and coastal areas continue to attract strong long-term demand thanks to lifestyle amenities, good schools, and limited housing supply.
Our Thoughts
San Diego’s housing market is beginning to feel more flexible than it has in years. There is more inventory. Mortgage rates have improved. Affordability has started to inch in a better direction. For buyers who have been waiting on the sidelines, this shift could create new opportunities. And for sellers, well-priced homes are still attracting strong interest — especially when they stand out in today’s market. Ask us how we transform homes to sell.
If you’re curious what these trends mean for your home value or buying power, we’re always happy to walk through the numbers with you. The market is evolving, and the right strategy can make all the difference.
Frequently Asked Questions About the San Diego Housing Market
What is happening in the San Diego housing market in 2026?
The San Diego housing market is seeing slightly higher inventory and improved mortgage rates compared with last year. Buyers have more options than they did during the extremely competitive market of recent years.
Are home prices dropping in San Diego?
Home prices have softened slightly in some areas, but overall values remain strong due to limited housing supply and continued demand across the region.
Is now a good time to buy a home in San Diego?
Many buyers are finding better opportunities today because inventory has increased and mortgage rates are lower than last year, allowing more flexibility when searching for a home.The San Diego housing market is seeing slightly higher inventory and improved mortgage rates compared with last year. Buyers have more options than they did during the extremely competitive market of recent years.
Are home prices dropping in San Diego?
Home prices have softened slightly in some areas, but overall values remain strong due to limited housing supply and continued demand across the region.
Is now a good time to buy a home in San Diego?
Many buyers are finding better opportunities today because inventory has increased and mortgage rates are lower than last year, allowing more flexibility when searching for a home.
