San Diego’s housing market stayed surprisingly strong through March and April 2026. While many buyers expected higher rates and economic uncertainty to slow things down, demand continued pushing forward — especially in higher-priced neighborhoods.
Home Prices Continue Climbing
The California housing market hit a record high in April, and San Diego remained one of the strongest markets in Southern California.
- February 2026 Median Price: $1,050,000
- March 2026: Prices continued trending upward across Southern California
- April 2026: San Diego median prices reached roughly $905,000 countywide, marking one of the highest levels on record
The biggest takeaway? Prices are not collapsing. In fact, San Diego continues showing steady appreciation despite affordability challenges and elevated mortgage rates.
Buyers Returned in April
After a slower March, buyer activity picked back up in April.
California home sales rose 3.9% month-over-month and 4.1% year-over-year, the strongest annual increase in several months.
That momentum was felt locally as well. San Diego saw strong activity in both move-up and luxury buyers, with total sales volume jumping significantly compared to last year.
Even with mortgage rates hovering around the mid-6% range, buyers are still entering the market when the right home becomes available.
Inventory Is Improving — But Still Tight
More homes are hitting the market compared to the ultra-low inventory years of 2023 and 2024, but supply is still nowhere near balanced.
San Diego continues operating in a low-inventory environment, which keeps pressure on pricing and competition. Sellers who price correctly are still attracting strong attention, especially in desirable neighborhoods.
A major reason inventory remains limited is simple: many homeowners locked in mortgage rates below 4% and are reluctant to sell into today’s higher-rate environment.
Homes Are Still Selling Quickly
Even as inventory improves slightly, homes in San Diego are still moving fast.
Well-priced homes are often receiving strong interest within the first few weeks, especially turnkey properties in coastal and central neighborhoods. Market times remain far below historical averages, showing that buyer demand is still very real.
Mortgage Rates Remain the Wildcard
Mortgage rates averaged:
- 6.05% in February
- 6.18% in March
- 6.33% in April
Rates moving above 6% continue to pressure affordability, but buyers have shown they are willing to adapt. Many are adjusting expectations, targeting smaller homes, condos, or different neighborhoods instead of leaving the market entirely.
What This Means for the Rest of 2026
Prices Should Stay Stable to Slightly Higher
Low inventory and steady demand continue supporting home values across San Diego County.
Buyers Are Adjusting, Not Disappearing
Higher rates slowed some activity earlier this year, but demand clearly returned in April. Buyers still want to own in San Diego — they’re simply becoming more selective.
Affordability Remains the Biggest Challenge
With prices near record highs and rates above 6%, affordability will continue shaping buyer behavior throughout 2026.
San Diego Is Still a Seller’s Market
The market may not feel as aggressive as the pandemic years, but sellers still hold the advantage in most areas due to limited supply and consistent demand.
Final Take
Spring 2026 proved that San Diego real estate remains remarkably resilient. Despite higher borrowing costs and economic uncertainty, prices are holding strong, homes are selling quickly, and buyer demand continues showing up.
For buyers, preparation and timing matter more than ever. For sellers, properly priced homes are still creating strong opportunities in today’s market.
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