03/30/2026
What’s Really Happening in the San Diego Real Estate Market Right Now (Spring 2026)
By Peter Ariza – Broker Associate
Berkshire Hathaway HomeServices
The San Diego real estate market in early 2026 is shifting in ways we haven’t seen in several years. While headlines across the country talk about a slowdown, the reality locally is more nuanced. This is not a crash. It’s a transition into a more balanced and strategic market.
One of the biggest changes is pricing behavior. Recent data shows that home prices in San Diego have softened slightly, with median prices down around 5% year over year in some segments. At the same time, homes are still selling, and demand remains strong enough that multiple offers are still common in desirable areas.
Inventory is another key factor. While supply is still relatively low compared to historical norms, it has started to increase. Active listings have risen, giving buyers more options and creating more competition among sellers. This is a major shift from the ultra-tight conditions we experienced over the past few years.
Because of this, negotiation is back. In fact, a large percentage of buyers are now purchasing homes below the original asking price, often with credits or concessions included. This marks a clear change from the aggressive bidding wars that defined the market not long ago.
At the same time, affordability continues to be one of the biggest challenges. High home prices combined with mortgage rates in the 6% range are keeping some buyers on the sidelines and forcing others to adjust their expectations. This has contributed to longer days on market and a more deliberate pace overall.
Interestingly, the rental market is also shifting. Rents in San Diego have declined slightly, driven by an increase in available inventory, which is giving tenants more negotiating power as well.
So what does this all mean?
For buyers, this is one of the most favorable environments we’ve seen in years. More options, less competition, and the ability to negotiate create real opportunity.
For sellers, strategy matters more than ever. Pricing, presentation, and marketing are critical to standing out in a market where buyers have choices.
The bottom line is simple. San Diego remains a strong long-term market, but success in today’s environment comes down to understanding the shift and adapting to it.