San Diego, January 22, 2026
San Diego’s housing market is showing signs of cooling, with decreased median home prices and longer time on the market. Recent trends suggest potential opportunities for buyers as inventory levels increase and competition decreases. However, elevated mortgage rates have impacted buyer demand, leading to a slower sales environment. Sellers may need to adjust their expectations and strategies accordingly. As market conditions evolve, staying informed will be crucial for both buyers and sellers seeking to navigate the San Diego real estate landscape effectively.
San Diego’s Housing Market Cooling: A Boon for Buyers
San Diego, California – Recent trends indicate a cooling in San Diego’s housing market, potentially offering new opportunities for prospective buyers. The median home price in the county has experienced a slight decline, and homes are spending more time on the market compared to previous years.
Current Market Trends
As of December 2025, the Case-Shiller Index reported a 0.9% decrease in San Diego home prices, marking the fifth consecutive monthly decline. This trend suggests a shift from the rapid price increases observed earlier in the year. Additionally, the average number of days homes remain on the market has increased, indicating a slowdown in sales activity.
Factors Influencing the Market
Several factors contribute to the current market dynamics. Elevated mortgage rates have impacted affordability, leading to a decrease in buyer demand. Moreover, a persistent shortage of housing inventory has historically driven prices up, but recent data shows a modest increase in available listings, providing more options for buyers.
Implications for Buyers and Sellers
For buyers, the current market conditions may present opportunities to negotiate better terms and prices. The increased inventory and longer time on the market can lead to less competition and more favorable deals. Sellers, on the other hand, may need to adjust expectations and pricing strategies to attract buyers in a more competitive environment.
Looking Ahead
While the market shows signs of cooling, San Diego remains a desirable location with strong demand. Buyers and sellers should stay informed about ongoing trends and consult with real estate professionals to navigate the evolving landscape effectively.
Frequently Asked Questions (FAQ)
What is the current trend in San Diego’s housing market?
The San Diego housing market is showing signs of cooling, with a slight decline in median home prices and longer times on the market.
How do elevated mortgage rates affect the housing market?
Elevated mortgage rates have impacted affordability, leading to a decrease in buyer demand and contributing to a slowdown in sales activity.
What does increased inventory mean for buyers?
Increased inventory provides buyers with more options and less competition, potentially leading to better negotiation opportunities and favorable deals.
Should sellers adjust their strategies in the current market?
Yes, sellers may need to adjust expectations and pricing strategies to attract buyers in a more competitive environment.
Is San Diego still a desirable location for homebuyers?
Yes, despite current market trends, San Diego remains a desirable location with strong demand, offering long-term value for homebuyers.
Key Features of San Diego’s Housing Market Trends
| Feature | Details |
|---|---|
| Median Home Price | Declined by 0.9% in September 2025, marking the fifth consecutive monthly decrease. |
| Days on Market | Average time increased to 29 days, up from 17 days in June 2024. |
| Inventory Levels | Modest increase in available listings, providing more options for buyers. |
| Buyer Demand | Decreased due to elevated mortgage rates impacting affordability. |
| Sellers’ Market | Transitioning to a more competitive environment, requiring adjusted expectations and pricing strategies. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
