San Diego Housing Market Finds Its Footing Heading Into 2026
After a year defined by shifting conditions and changing buyer behavior, San Diego’s housing market is beginning to settle into a more measured rhythm. While price volatility, higher inventory, and longer selling timelines have replaced the intense competition of recent years, these changes are creating a healthier and more balanced market as 2026 approaches.
In November 2025, San Diego’s median home sale price landed at $990,000 — a figure that reflects both stability and transition. Although the year-over-year increase of 1.54% appears modest, it represents a rebound from the declines seen in September and October, when prices slipped below previous highs.
Earlier in 2025, median prices regularly exceeded $1 million. In recent months, however, values have oscillated between the high $900,000s and low $1 million range. This pricing behavior suggests that the market is recalibrating, as buyers weigh affordability concerns against seller expectations in an environment shaped by higher interest rates and increased housing supply.
Rather than signaling weakness, this adjustment points to a market searching for equilibrium — one where pricing reflects realistic demand rather than urgency-driven competition.
As expected, inventory levels declined during the winter months. By December 2025, active listings fell to 4,222 homes, marking a nearly 16% decrease from November. Many sellers paused their plans for the holidays, choosing instead to relist in the spring.
Despite this seasonal pullback, inventory remains significantly higher than it was a year ago. Compared to December 2024, active listings are up more than 14%, underscoring the fact that buyers continue to enjoy more selection than they have in recent years. This expanded choice has helped maintain balance in the market, even as seasonal trends take hold.
Another notable shift in San Diego’s market is the amount of time homes spend on the market. In November, the median days on market rose to 28 days — a 40% increase compared to the same time last year. This also reflects a noticeable slowdown from October, when homes were selling in about 25 days.
While this may feel slow compared to the frenzied pace of early 2024 — when many homes sold within two weeks — it still represents a relatively healthy market by historical standards. Buyers now have more time to evaluate properties, conduct inspections, and negotiate, rather than feeling pressured to act immediately.
For sellers, this shift reinforces the importance of proper pricing and presentation. Well-maintained homes in desirable areas continue to attract attention, but buyers are no longer overlooking flaws or overpaying simply to secure a property.
Market balance is commonly measured using Months of Supply Inventory (MSI), which compares available homes to current buyer demand. In California, around three months of supply typically indicates a balanced market.
As of November 2025, San Diego County recorded 3.2 months of supply — squarely within balanced territory. This figure represents an increase from both October 2025 and November 2024, reflecting the broader shift away from the seller-dominated conditions that prevailed in 2023 and much of 2024.
These balanced conditions benefit both sides of the transaction. Buyers gain negotiating leverage and time to make informed decisions, while sellers who price their homes realistically can still expect steady interest and fair offers. The big question heading into 2026 is whether spring demand will tip the scales back toward sellers or if inventory levels will keep the market evenly matched.
San Diego’s housing market is entering the new year in a notably healthier position than in recent cycles. Price stability, manageable inventory levels, and more reasonable market timelines suggest a return to fundamentals rather than speculation-driven activity.
As spring approaches, increased buyer demand could introduce upward pressure on prices once again. However, the elevated inventory carried over from 2025 may help prevent the extreme competition seen in previous years. For both buyers and sellers, success in 2026 will hinge on strategy, timing, and a clear understanding of local market dynamics.
The San Diego housing market is no longer defined by frenzy — it’s defined by balance. Prices are stabilizing just below the $1 million mark, inventory remains elevated despite seasonal declines, and buyers are moving with greater confidence and caution. As the market continues to evolve, those who stay informed and adaptable will be best positioned to make smart real estate decisions in the year ahead.
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