San Diego Real Estate Market Reaches a New High as Inventory Tightens
The San Diego housing market continues to show remarkable strength as we move through the summer. Home prices have reached a new high, inventory is running below last year's levels, and properties are continuing to sell at a relatively fast pace.
Together, these trends point to a market where demand remains strong and available housing is becoming increasingly limited. While seasonal changes are a normal part of the real estate cycle, the latest numbers suggest that San Diego is entering the second half of the year from a position that increasingly favors sellers.
Here's a closer look at what the latest market data tells us.
San Diego's median single-family home sale price reached $1,085,000 in June, setting a new high for the current data series. That's a meaningful increase from the previous peak of $1,074,000 recorded in April.
Compared with June of last year, the median sale price is up 5.85%, rising from $1,025,000. Prices also increased 2.45% from May, when the median was $1,059,000.
The latest numbers reinforce something we've been seeing throughout 2026: San Diego home values have continued to move higher despite changes in mortgage rates and shifting market conditions.
In fact, the market has now recorded nine consecutive months of year-over-year price growth, dating back to November 2025. Prices have also increased in five of the past six months.
The longer-term movement is just as noteworthy. In November, the median sale price was $990,000. Just seven months later, that figure has increased by approximately $95,000.
For buyers, this means waiting for a significant decline in prices may not necessarily produce the savings they expect. For homeowners considering a sale, meanwhile, the continued appreciation demonstrates that demand for San Diego real estate remains resilient.
One of the biggest shifts in the San Diego market has been the reversal in inventory trends.
During much of 2025, the number of available homes was higher than the previous year's levels. That has now changed.
There were 5,739 active single-family listings in June, representing a 6.16% decline compared with the same period last year. By July, active inventory stood at 5,803 homes, which was 7.08% lower than the 6,245 listings available in July 2025.
That marks four consecutive months in which San Diego's year-over-year inventory has declined. More importantly, the gap has continued to widen.
The seasonal pattern is also worth watching. Inventory increased only 1.12% from June to July this year, compared with a 2.11% increase during the same period last year. Since July is traditionally around the seasonal peak for San Diego inventory, the relatively modest increase could indicate that the market is entering the second half of the year with tighter supply than expected.
For buyers, fewer available homes can mean more competition, particularly for well-priced properties in desirable neighborhoods.
For sellers, limited inventory can create a more favorable environment because buyers have fewer alternatives available to them.
Inventory isn't the only indicator that demand remains strong. Homes are also moving relatively quickly once they hit the market.
In June, the median San Diego single-family home spent 18 days on the market, up from an exceptionally fast 14 days in May.
At first glance, that month-over-month increase may appear significant. However, May's 14-day figure was the fastest reading in the two-year data series, so some slowdown was to be expected.
The year-over-year comparison provides a better picture of the market's underlying strength.
In June 2025, the median home spent 21 days on the market. That means homes are now selling about 14.29% faster than they were a year ago.
The comparison becomes even more interesting when looking at last summer's trajectory. In 2025, days on market increased from 21 days in June to 24 days in July and 27 days in August.
This year, the market entered summer from a much stronger position. After reaching a 29-day peak in January, the median time on market steadily improved over the following months.
For buyers, the message is clear: preparation matters. In a market where desirable homes can sell in just a couple of weeks, buyers who are waiting until they find the perfect property before getting their financing and strategy in place may find themselves behind the competition.
Another useful way to evaluate market conditions is through Months of Supply Inventory (MSI).
Generally speaking, a market with less than three months of supply is considered a seller's market, while more than three months tends to favor buyers. Around three months is often viewed as a more balanced environment.
By that measure, San Diego has once again moved into seller's market territory.
As of June, the region had 2.7 months of supply, down from 3.0 months in May. That's a 10% month-over-month decrease and a substantial 25% decline from the 3.6 months of supply recorded in June 2025.
The timing is particularly significant. June and July are typically periods when inventory is relatively elevated, yet San Diego's supply level is already below the three-month threshold.
The current 2.7-month supply also matches the June 2024 level, making it the tightest June reading in the available data.
When you put all of these numbers together, a consistent picture emerges:
Home prices have reached a new high.
Inventory is below last year's levels.
Homes are selling faster than they were a year ago.
Months of supply has fallen back into seller's market territory.
These trends suggest that buyer demand is currently outpacing the amount of housing coming onto the market.
For buyers, today's market requires a thoughtful approach.
The good news is that opportunities are still available, and buyers have more information than ever to help them make informed decisions. However, the combination of rising prices, declining inventory, and faster sales means buyers may have less negotiating leverage than they did earlier in the year.
Being financially prepared can make a significant difference. Getting pre-approved, understanding your budget, identifying your priorities, and having a clear strategy can help you move quickly when the right home becomes available.
It is also important not to focus exclusively on headlines. Real estate conditions can vary significantly from one San Diego neighborhood to another. A buyer's experience in one community may look very different from what another buyer encounters elsewhere.
The current environment is increasingly favorable for homeowners thinking about selling.
With inventory below last year's levels and homes selling faster, sellers are benefiting from a stronger supply-and-demand dynamic. However, a strong market does not mean every property will automatically receive multiple offers or sell immediately.
Pricing remains critical.
Buyers today are still sensitive to affordability, and an overpriced property can sit on the market even when overall demand is healthy. Strategic pricing, strong presentation, professional marketing, and an understanding of current neighborhood-level sales can all play an important role in maximizing a home's potential.
The goal isn't simply to put a home on the market. It's to position the property correctly from the beginning.
San Diego's housing market is entering the second half of the year with considerable momentum.
Prices have established a new high, inventory has moved below year-ago levels, and homes are selling faster than they were last summer. At the same time, the market's 2.7 months of supply indicates that available housing remains relatively tight.
The big question now is whether more homeowners will decide to list as we move toward fall.
If new listings increase significantly, additional supply could give buyers more options and help move the market closer to balance. If listing activity remains limited, however, continued buyer demand could keep inventory tight and put additional upward pressure on prices.
For now, the numbers point toward a San Diego market where sellers have the advantage, while buyers need to be prepared to act decisively.
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