Is San Diego’s housing market finally shifting?

San Diego housing will not suddenly become affordable. But for the first time in years, it is becoming less strained. New data from Zillow shows that the percentage of household income required to buy a home in San Diego is starting to fall.

This shift is happening because several market forces are converging at the same time. Mortgage rates have stabilized near 6 percent. Home prices are growing slowly rather than surging. Incomes are rising modestly. Together, they change behavior. The result is a market that feels calmer, more rational, and easier to navigate.

For buyers, this is not about waiting for a crash. It is about leverage returning. When rates stabilize and prices stop racing ahead, competition softens. Buyers can finally plan instead of react.

For sellers, moderating price growth is normalization. Equity is still building, just at a healthier pace. Serious buyers are active, but pricing and presentation matter more than they did during the frenzy years.

If you are thinking about a move this year, I help clients cut through the noise and make confident decisions based on timing, leverage, and long term goals.