San Diego’s Housing Market Is Finding Its Balance

WEEKLY SAN DIEGO REAL ESTATE UPDATES | July 1st, 2026

The Market Is Finding Its Balance

For the past several years, San Diego homeowners experienced one of the strongest periods of home appreciation we’ve ever seen. It wasn’t unusual to see homes gain significant value in a relatively short period of time.

Today, that story is changing.

A Return to Normal

San Diego’s housing market has shifted from rapid appreciation to stability.

Inventory has increased compared to the past few years, mortgage rates remain above 6%, and buyers have become more selective. At the same time, the supply of homes for sale is still relatively limited, which continues to support home values.

Instead of seeing prices climb at an unsustainable pace, we’re entering a market that feels much more balanced.

What This Means

For homeowners, your equity hasn’t disappeared. Home values remain near record highs, but the days of double digit annual appreciation appear to be behind us for now.

For buyers, this is creating a healthier environment. Homes are taking a little longer to sell, negotiations have become more common, and there is less pressure to make rushed decisions.

For sellers, strategy matters more than ever. Proper pricing, thoughtful preparation, and strong marketing have become much more important than they were during the frenzy of the past few years.

In this healthier market, buyers have more opportunities to negotiate and find the right home without feeling rushed, while sellers can still achieve exceptional results by positioning their home correctly from day one. Both now have more room to make confident decisions based on their goals instead of reacting to the market.

The biggest difference is that strategy matters more than ever. Whether you’re thinking about buying, selling, or simply curious about what your home is worth in today’s market, having a plan is becoming much more important than trying to time the market. If you’d like to talk through your options, I’m always happy to help.

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