San Diego’s Housing Market Remains Strong as Spring Activity Picks Up
The San Diego housing market continues to show resilience as the spring selling season gains momentum. While many markets across the country are still adjusting to higher mortgage rates and changing buyer behavior, San Diego continues to hold its position as one of the most competitive and desirable real estate markets in the country.
Home prices remain firmly above the million-dollar mark, inventory is gradually increasing, and buyers appear to be returning to the market with renewed urgency. At the same time, market conditions are beginning to shift toward a more balanced environment compared to the intense seller-driven conditions seen over the past several years.
Here’s a closer look at the trends currently shaping San Diego’s real estate market.
San Diego home values remain remarkably stable despite ongoing affordability challenges and shifting market conditions. In February, the median single-family home price held steady at $1,050,000, matching January’s figure and posting a modest year-over-year increase.
Although annual price growth has slowed compared to earlier periods, the fact that home values continue to remain above the million-dollar threshold speaks to the long-term strength of demand throughout the region. Buyers continue to see value in San Diego’s lifestyle, strong economy, desirable climate, and limited housing supply.
This also marks several consecutive months of annual price growth for the local market, signaling continued stability even as mortgage rates and economic uncertainty remain factors for many buyers.
As the spring season unfolds, maintaining stable pricing at these elevated levels suggests that sellers are still benefiting from healthy demand, particularly for well-priced homes in desirable neighborhoods.
Like many housing markets, San Diego is beginning to see more inventory hit the market as spring approaches. More homeowners appear willing to list their properties in anticipation of increased buyer activity during the traditionally busy spring and summer months.
In March, active single-family home listings increased both month-over-month and year-over-year, giving buyers more options than they had earlier in the year.
This increase in inventory is important because it helps create a healthier market environment. During the height of the seller’s market, buyers often faced limited inventory, intense bidding wars, and very little negotiating power. While inventory remains relatively tight compared to historical standards, today’s buyers are beginning to see more opportunities and slightly improved flexibility.
Interestingly, while inventory levels are increasing, the pace of growth appears more controlled compared to the significant inventory surge experienced during the middle of 2025. This may suggest that the market is beginning to stabilize rather than becoming oversupplied.
For buyers, this creates a more balanced experience: more homes to choose from without an overwhelming excess of inventory putting downward pressure on prices.
One of the clearest signs that buyer activity is strengthening in San Diego is the sharp decline in days on market.
After homes spent significantly more time on the market earlier this year, February saw a major turnaround. The median listing sold much faster compared to January, signaling that motivated buyers are acting quickly when attractive properties become available.
This shift suggests that many buyers who may have been waiting on the sidelines are beginning to move forward with purchases as inventory improves and mortgage rates stabilize.
Even though homes are still taking slightly longer to sell compared to the same time last year, the gap has narrowed considerably. That’s a meaningful change from much of 2025, when properties often lingered on the market far longer than expected.
The renewed pace of sales indicates that competition may be increasing again as the spring market heats up.
For sellers, this means properly priced homes in strong locations may continue attracting quick interest and competitive offers.
One of the most important indicators in real estate is Months of Supply Inventory (MSI), which helps determine whether a market favors buyers or sellers.
Historically, around three months of inventory is considered a balanced market in California. Markets with lower supply tend to favor sellers, while higher supply levels often benefit buyers.
Earlier this year, San Diego briefly shifted into buyer-friendly territory as inventory levels rose. However, recent data shows the market moving back toward a more balanced position.
This shift appears to be driven by buyer demand increasing at a faster pace than inventory growth. While more homes are hitting the market, buyers are also becoming more active, helping absorb available inventory.
A balanced market can create healthier conditions overall. Buyers may gain slightly more negotiating power and inventory choices, while sellers can still benefit from stable pricing and steady demand.
As we move deeper into the spring and summer selling season, it will be important to watch whether stronger buyer demand eventually pushes the market back toward seller-friendly conditions.
Several key factors will likely influence the direction of the San Diego housing market over the coming months:
Mortgage rate trends
Seasonal increases in buyer activity
Future inventory growth
Consumer confidence and economic conditions
If mortgage rates continue to ease and buyer confidence improves, competition could increase significantly during the peak spring and summer months. That could place upward pressure on prices once again, particularly in highly desirable neighborhoods with limited inventory.
On the other hand, if inventory continues to grow steadily, buyers may continue benefiting from improved selection and more balanced negotiating conditions.
For now, San Diego’s housing market appears to be entering a healthier and more stable phase — one where both buyers and sellers have opportunities, depending on their goals and timing.
Stay up to date on the latest real estate trends.
You’ve got questions and we can’t wait to answer them.