San Diego County Real Estate Market Update March 2026
The San Diego County housing market entered early 2026 with a familiar dynamic: limited inventory, steady buyer demand, and home prices that continue to hold firm despite higher mortgage rates.
While some parts of the country are seeing softer housing conditions, San Diego continues to behave differently. The region still faces a structural shortage of housing, and that lack of supply continues to support property values across the county.
The latest data from the San Diego MLS, current as of March 2026, shows a market that is stable overall but with noticeable differences between detached homes and the condo/townhome segment.
Below is a detailed breakdown of what is happening in the San Diego County real estate market and what buyers and sellers should know moving forward.
Key San Diego County Market Statistics – February 2026
Across all property types, the latest data shows:
- Closed Sales: down 5.6% year-over-year
- Median Home Price: $905,000 (up 1.1% year-over-year)
- Homes for Sale: down 15.4%
- Average Days on Market: 44 days
- Months of Inventory: 2.2 months
These numbers show a market that is still tight on inventory but slightly slower than a year ago, largely due to mortgage rates and affordability challenges.
In real estate terms, a balanced market typically has 5–6 months of inventory. San Diego currently sits at just 2.2 months, which means it remains a seller-leaning market overall.
Detached Homes Continue to Drive the Market
Single-family homes remain the strongest segment of the San Diego housing market.
February 2026 Detached Home Statistics
- Median Price: $1,089,795
- Average Price: $1,406,108
- Closed Sales: 1,008 homes
- Inventory: 2,379 homes available
- Days on Market: 41 days
Prices for detached homes increased 2.1% year-over-year, showing continued resilience even with slower sales activity.
However, the biggest change in this segment is supply.
New listings of detached homes fell 17.6% compared to last year, meaning fewer homeowners are putting their properties on the market.
This trend is something we continue to see across San Diego County. Many homeowners purchased or refinanced when mortgage rates were in the 2–3% range, making them reluctant to sell and take on a much higher interest rate.
The result is simple:
Fewer homes for sale keeps prices supported.
Condo and Townhome Market Shows Slight Softening
The attached home market — condos and townhomes — is showing slightly more softness compared to single-family homes.
February 2026 Attached Home Statistics
- Median Price: $660,000
- Average Price: $770,849
- Closed Sales: 541 homes
- Days on Market: 50 days
Unlike detached homes, the median price for attached homes declined 2.2% year-over-year.
Sales activity also slowed:
- Closed sales dropped 11.6%
- New listings declined 21.6%
Despite that slowdown, inventory remains limited with just 2.8 months of supply, which still leans toward sellers.
For many buyers entering the market today, condos and townhomes remain the most attainable entry point into San Diego homeownership.
Inventory Remains the Biggest Story
The most important factor shaping the San Diego housing market continues to be inventory shortages.
Across the entire county:
- Total homes for sale declined 15.4% year-over-year.
Detached home inventory dropped 19.1%, while attached inventory fell 10.1%.
This is one of the reasons why prices continue to remain stable even when buyer demand slows slightly.
Simply put:
There are not enough homes available to create downward pressure on prices.
Homes Are Taking Longer to Sell
While San Diego is still a seller-leaning market, homes are taking longer to sell compared to the extremely fast pace seen during the pandemic housing boom.
- Detached homes now average 41 days on market
- Attached homes average 50 days on market
That represents increases of:
- 10.8% longer for detached homes
- 22% longer for attached homes
Buyers today are taking more time to evaluate properties, and we are seeing more negotiations compared to the multiple-offer frenzy of previous years.
However, homes that are well-priced and properly marketed still sell quickly.
Affordability is Improving Slightly
One of the more interesting developments in the market is the improvement in the Housing Affordability Index.
- Detached home affordability index: 42
- Attached home affordability index: 69
The increase in the index means that household incomes are slightly better aligned with home prices than they were a year ago, largely due to stabilizing interest rates and modest price growth.
Even so, San Diego remains one of the least affordable housing markets in the United States.
What Buyers Should Know Right Now
For buyers considering San Diego County in 2026:
1. Inventory remains limited
Good homes still sell quickly, especially in desirable neighborhoods.
2. The frenzy has cooled slightly
Buyers now have more time to make decisions compared to 2021–2022.
3. Pricing remains stable
The limited supply of homes continues to support property values.
For buyers relocating from out of state — which remains common in San Diego — the market still compares favorably to other major coastal metros.
What Sellers Should Know
For homeowners considering selling in San Diego County:
- Inventory is still historically low
- Home prices remain near record levels
- Demand continues to exceed supply in many areas
However, pricing correctly has become more important than it was during the peak of the market.
Homes that are overpriced can sit on the market longer, especially with buyers becoming more selective.
Outlook for the Rest of 2026
Looking ahead through the rest of the year, several trends will likely shape the San Diego real estate market:
1. Inventory will remain tight
New construction has not kept pace with population growth.
2. Home prices should remain stable
Limited supply continues to support values.
3. Sales activity may gradually improve
If mortgage rates decline even slightly, buyer demand could increase.
San Diego has long been a supply-constrained housing market, and that fundamental reality continues to shape pricing trends.
Final Thoughts
As we move further into 2026, the San Diego County real estate market remains resilient and supply-constrained.
While higher mortgage rates have slowed transaction volume, the lack of available homes continues to support home prices across the region.
For buyers, this means the market is more manageable than it was during the peak years, but good homes still require quick action.
For sellers, the market continues to provide strong opportunities, especially for well-prepared listings.
If you are thinking about buying or selling a home in San Diego County, understanding the local market conditions in your specific neighborhood is critical. Real estate trends can vary widely from community to community across the region.
