The San Diego Housing Market Just Shifted

 

The San Diego real estate market has officially shifted gears as we enter 2026.

While the data shows some cooling, it signals a transition rather than a crash, offering a unique strategic window for both buyers and sellers.

Key Market Statistics [01:14]:

Sales are down: Transaction volume has slowed across the county.

Inventory is up: More properties are hitting the market, giving buyers more options.

Prices are flat: The rapid appreciation of previous years has leveled off.

Days on Market are up: Homes are sitting longer, reducing the “fever” of open-house scrambles.

Affordability improved: Slightly better conditions for entry compared to previous peaks.

Strategic Takeaways:

Leverage for Buyers [10:05]: With increased inventory and slower sales, buyers have regained leverage to negotiate and take their time viewing properties without the pressure to offer $100k over asking instantly.

Interest Rate Trends [07:14]: Rates are currently hovering around 6%, with predictions suggesting they may stabilize in the sixes or even dip into the high fives.

Market Resilience [01:42]: Historically, San Diego has proven to be a top-performing national market that bounces back quickly from economic shifts. Waiting for a “perfect” headline often means you’ve already missed the opportunity.

Investment Opportunities [08:47]: New loan products for self-employed individuals and investors are making it easier to enter the market with 20-25% down, often requiring less qualification documentation than in the past.

The Bottom Line: 2026 is being defined as a market of strategy, not just speed [12:24]. Success this year comes down to having a methodical plan in place long before you find “the one” property.