San Diego Market Report 01/07/26

Arrington Market Review

weekly san diego real estate updates | Jan 7th, 2026

Consumer Confidence Is Rising. Timing Matters.

California wrapped up 2025 with a notable shift. Consumer confidence jumped in December to its highest level in five years after months of steady decline. Confidence data may sound abstract, but historically it influences housing activity before prices or interest rates ever change.

This does not mean affordability is suddenly fixed. Mortgage rates remain elevated and home prices in San Diego are still high.

Consumer confidence changes consumer behavior.

When people feel more secure about the future, they become more willing to make major life decisions, including moving, even when conditions are not perfect. Housing markets tend to move when uncertainty fades, not when conditions become ideal.

If you are a homeowner thinking about trading up in 2026, I am talking to you.

In periods of rising confidence, sellers are less likely to panic and buyers are less likely to sit on the sidelines. Activity returns quietly. In a market like San Diego, where inventory is limited and demand is driven by lifestyle and long term ownership, this typically leads to stability and selective competition rather than dramatic price swings.

For trade up buyers, that environment can be advantageous. You are selling and buying in the same market, so relative value matters more than perfectly timing rates or prices. The homeowners who move smoothly are the ones who plan ahead, while others scramble once momentum returns.

Planning does not mean committing today. It means understanding your current home's value, realistic purchase ranges, timing options, and when buying and selling may be optimal for you.

If you are considering a real estate move in 2026, the best time to plan is before competition returns, not after.

Ready to make a move? Give me a call today.

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