San Diego Housing Market Update: Summer 2026 Trends & Forecasts
San Diego Housing Market Update: Summer 2026 Trends & Forecasts
There is a specific cadence to San Diego summers, the morning marine layer clearing over the coastline, the shift in traffic patterns, and, inevitably, the increased activity in our local real estate market. As we move into June, that pulse is stronger than ever, though it is manifesting in two very different ways depending on the property you’re looking at.
A Global Shift Toward Stability
Beyond our local neighborhoods, the broader economic horizon is looking brighter. The preliminary peace agreement between the United States and Iran is a significant development for global stability. By helping to ease geopolitical volatility and pointing toward the reopening of the Strait of Hormuz, this progress is helping to stabilize energy markets and foster a more predictable environment for interest rates. As the global stage finds its footing, we are seeing a positive ripple effect, bringing renewed confidence to the financial markets that underpin our real estate sector.
What This Means for You
Whether you are looking to make a move this summer or simply evaluating your current home’s position, here is the pulse of the San Diego market right now.
For Our Sellers: Your Equity is Well-Positioned
If you own a detached single-family home, your asset remains a cornerstone of the San Diego market. We are currently seeing a continued shortage of inventory, which decreased by 24.7% year-over-year in May 2026, keeping property values incredibly well-insulated. The market is steady and balanced, where well-prepared homes that are priced effectively are consistently finding interested buyers. In fact, these properties are moving efficiently, with the average days on market decreasing by 3.3% to just 29 days, and sellers successfully capturing 99.0% of their original list price. Even in this nuanced environment, we continue to see high-quality homes go under contract during their first weekend on the market, often above the list price. This serves as a vital reminder that in today’s market, presentation and strategy are everything.
With the current climate of stability, many homeowners are finding that this is a great time to evaluate their long-term plans. If you are considering transitioning into a lifestyle-focused coastal condo or a different property, the strength of your current equity, with the median sales price for detached homes holding firm at $1,099,500, puts you in a fantastic position to make a strategic, informed move.
For Our Buyers: A Market of Options
We are seeing a healthy evolution in the buyer experience. The "one-size-fits-all" approach is changing, and today’s market rewards those who know where to look.
The detached market remains a competitive space where preparation is key; with a 24.7% year-over-year decrease in inventory and a median sales price of $1,099,500, being pre-vetted and ready allows you to act with confidence when the right property becomes available. Meanwhile, the attached market (condos and townhomes) offers a wonderful area of opportunity for those looking to enter the market or downsize. With a 5.6% increase in inventory and a balanced 4.0-month supply, buyers now have the time to be selective and find the property that perfectly fits their lifestyle. Furthermore, with a median sales price of $675,000—representing a 1.5% decrease year-over-year—and a housing affordability index rising by 4.9% to 64, this segment provides a sophisticated, accessible, and increasingly viable entry point into Southern California living.
Looking Ahead: Rates and the Second Half of 2026
Looking toward the remainder of the year, the conversation around mortgage rates is shifting from "how high will they go" to a more measured outlook. Current forecasts suggest that 30-year fixed rates will likely remain in the low-to-mid 6% range through the summer. While we don't anticipate a dramatic decrease, the stabilization of global energy markets and cooling inflation data provide a foundation for potential gradual improvement. Most financial experts now project that rates may settle closer to the 6% mark by the end of Q4. As rates moderate, we expect this to unlock more inventory and allow a wider segment of buyers to enter the market with renewed purchasing power.
We’re heading into the second half of 2026 with a lot of positive tailwinds. Between the progress toward global stability and the expected gradual easing of mortgage rates, the market is setting the stage for a very active summer and fall. Whether you are leveraging your current equity or finding a foothold in this landscape, the key to success remains the same: clarity, timing, and a strategy built on data.
I’m here to help you find your path.
No pressure. Just a strategic, honest conversation.
- Greg
