San Diego Market Update — What Buyers and Sellers Need to Know Right Now

People ask me every week: "How's the market?" And my honest answer is always: it depends on where and what.

A $650K single-family in Chula Vista and a $3M home in La Jolla are in completely different markets right now. Lumping them together is useless. So let me break down what I'm actually seeing on the ground.

The big picture

San Diego's median home price is hovering around $950,000 as of early 2026. That number has held remarkably steady despite interest rates that are still elevated compared to the ultra-low rates we saw in 2020-2021.

Why haven't prices dropped much? Two words: low inventory. San Diego simply does not have enough homes for sale to meet demand. Homeowners who locked in 3% mortgages are reluctant to sell and take on a new 6%+ mortgage — that's the "lock-in effect" and it's very real here.

What I'm seeing by price range

Under $700K: This segment is the most competitive. First-time buyers and investors are both competing for the same homes. Multiple offers are common. Days on market: 10-20. If you're a buyer in this range, be ready to move fast and bring your best offer first.

$700K-$1.2M: The move-up buyer segment. Slightly less frantic than the entry level but still competitive in desirable neighborhoods. Well-priced homes sell within 2-3 weeks. Overpriced homes sit. Pricing strategy matters enormously here.

$1.2M-$2M: More balanced. Buyers have a bit more negotiating power, especially in inland areas. Coastal properties in this range are still competitive. Sellers need to be realistic about pricing.

$2M+: Luxury has its own dynamics. Longer days on market (30-60+ days is normal), more negotiation room, and buyers who are patient and specific about what they want. Proper staging and marketing are non-negotiable at this level.

For buyers right now

Don't wait for a crash. I've been hearing "I'm waiting for prices to drop" for 15 years in San Diego. Could there be a correction? Sure, anything is possible. But timing the market is a fool's game. What I've seen consistently is that buyers who get in, build equity, and hold for 5+ years come out ahead — regardless of what the market did in the short term.

That said, this is a better buying environment than 2021-2022. You're less likely to be in a 15-offer bidding war. Sellers are more willing to negotiate on repairs and terms. And if rates come down even a point, you can refinance into a better payment.

For sellers right now

Price your home right from the start. The days of listing high and waiting for a bidding war are mostly over (except in the hottest price ranges). Overpriced homes sit on the market, get stale, and eventually sell for less than they would have if priced correctly from day one.

Invest in presentation — professional photos, staging, minor repairs. In a market where buyers have slightly more options, first impressions matter more than ever.

And work with an agent who knows how to market your specific home to the right buyers. A listing that gets 10,000 views from the wrong audience is worth less than 500 views from qualified, ready buyers in your price range.

My take on interest rates

I'm not an economist and I won't pretend to predict where rates are going. What I tell my clients is this: marry the house, date the rate. If you find the right home at a price you can afford at today's rate, buy it. If rates drop, refinance. If they don't, you still own a great home in one of the best real estate markets in the country.

The people who have built serious wealth in San Diego real estate over the past 20 years didn't do it by timing interest rate cycles. They did it by buying good properties in good locations and holding on.

Want to know what's happening in your specific neighborhood?

Market averages are interesting but what really matters is what's happening on your street, in your school district, in your price range. I can pull that data for you in about five minutes. Just reach out.