San Diego Real Estate Continues to Favor Sellers Heading Into Fall
San Diego's housing market continues to show remarkable resilience as we move toward the end of summer. Home prices have reached a new high, inventory remains below last year's levels, and properties are continuing to sell relatively quickly.
While the pace of the market has moderated slightly from the spring, the overall picture remains favorable for sellers. Strong demand combined with limited supply is keeping competition elevated, particularly for homes that are priced well and positioned attractively in the market.
The median single-family home in San Diego sold for $1,099,500 in July, establishing a new high in the current data set. The figure represents a 5.72% increase from July 2025, when the median sale price was $1,040,000.
Prices also continued their upward movement on a month-to-month basis, increasing 1.34% from June's $1,085,000 median.
This latest increase extends a longer trend. San Diego has now recorded 10 consecutive months of year-over-year price growth, dating back to November 2025.
The pace of appreciation has also strengthened in recent months. After a relatively modest 0.86% annual increase in May, year-over-year growth accelerated to nearly 6% in both June and July.
Some of that acceleration is influenced by last year's comparison, but the broader trend is still significant. The market has moved steadily higher throughout 2026, rising from a $1.05 million median in January to nearly $1.1 million by July.
For homeowners and sellers, the takeaway is clear: San Diego's $1 million price point is no longer an ambitious ceiling. It has become a firmly established part of the market.
Supply continues to be one of the most important factors shaping San Diego's housing market.
In August, there were 5,841 active single-family listings, which was 4.90% fewer than the 6,142 listings available during August 2025.
July showed an even larger year-over-year difference, with 5,803 active listings representing a 7.08% decline from the previous year.
This marks the fifth consecutive month of year-over-year inventory declines.
What's particularly interesting is that inventory has remained relatively steady throughout the summer rather than experiencing the larger seasonal buildup seen last year. Active listings increased only slightly from June to July and again from July to August.
Last year, inventory continued climbing through the summer before reaching approximately 6,245 listings in July. This year's inventory peak arrived at a lower level, leaving buyers with fewer properties to choose from than they had at the same point in 2025.
That supply constraint is important because buyer demand has remained strong enough to absorb new listings as they come onto the market.
For sellers, fewer competing properties can create a more favorable environment. For buyers, it means that desirable homes may not remain available for long.
Despite a slight summer slowdown, San Diego homes are continuing to move at a healthy pace.
The median single-family home spent 19 days on the market in July, down from 24 days during the same month last year. That's a 20.83% year-over-year improvement.
There has been some moderation compared with the spring. In May, the median home sold in just 14 days, while June came in at 18 days. July's 19-day figure shows that the market has cooled somewhat from its spring peak.
However, the year-over-year comparison tells a more important story.
In 2025, San Diego listings were taking progressively longer to sell as summer continued. Days on market increased from 21 days in June to 24 in July and continued climbing later in the year.
In 2026, the pattern has been very different. Every month since February has recorded fewer days on market than the corresponding month last year.
That suggests the late-summer slowdown is more of a seasonal moderation than a major loss of buyer demand.
Buyers may have slightly more time to evaluate their options than they did during the spring, but well-priced homes can still attract attention quickly.
One of the best ways to understand the balance between buyers and sellers is through Months of Supply Inventory (MSI).
In general, around three months of supply is considered a balanced market. Below three months typically indicates conditions favoring sellers, while more than three months generally gives buyers greater leverage.
San Diego currently sits just below that dividing line.
As of July, the market had approximately 2.9 months of supply, keeping it just inside seller's market territory.
That represents an increase from June's 2.7 months, reflecting the normal buildup of inventory during the summer. However, the year-over-year comparison is much more telling: July's supply was 17.14% lower than the 3.5 months recorded last year.
San Diego has now remained at or below the three-month threshold for five consecutive months.
That's a notable change from last summer, when inventory levels pushed the market further toward buyers.
San Diego's housing market is entering the fall with a strong foundation.
Prices are at record levels, inventory remains below where it was a year ago, and homes are selling in fewer than three weeks on average. While the market has eased somewhat from its spring pace, the underlying supply-and-demand balance continues to favor sellers.
For sellers, the current environment remains encouraging. Limited competition and strong buyer demand can create favorable conditions, particularly for homes that are properly priced and marketed.
For buyers, the market requires preparation and decisiveness. There may be slightly more breathing room than there was earlier in the year, but limited inventory means attractive properties can still move quickly.
The biggest question heading into the remainder of the year is whether more inventory will eventually give buyers additional leverage. For now, however, the numbers suggest that San Diego remains a competitive market where demand is keeping pace with—and in many areas outpacing—available supply.
Stay up to date on the latest real estate trends.
You’ve got questions and we can’t wait to answer them.