As we step into 2026, many San Diego homeowners and future buyers are asking the same question. What will the housing market look like this year? While no one can predict the future with perfect accuracy, early data and expert insights point to several clear trends that are already beginning to take shape.

Below are the key factors likely to guide the San Diego real estate market in 2026.

1. Mortgage Rates Expected to Gradually Ease
   Most forecasts suggest that mortgage rates may slowly trend downward throughout the year. Even modest rate improvement can increase affordability and help more buyers re enter the market. Buyers who sat on the sidelines in 2025 may begin to re engage once financing becomes more favorable.
2. A More Balanced Market May Emerge
   San Diego has spent years in a low inventory environment, but early indicators hint at a slight rise in available homes for sale. Increased inventory could soften the intense competition seen in previous years and offer buyers more options without removing the overall strength of the market for sellers.
3. Steady Home Price Growth Expected
   Home prices in San Diego are projected to continue rising, although at a slower pace than we saw during the rapid growth periods. Demand for coastal and inland North County communities remains strong, and limited land for new development continues to support long term appreciation.
4. Lifestyle Driven Moves Continue to Play a Major Role
   Remote and hybrid work continue to influence how and where people choose to live. Many buyers are prioritizing quality of life, outdoor access, and flexible home layouts. San Diego remains an attractive destination for those looking for a well rounded lifestyle in a mild climate.
5. Upgraded and Move In Ready Homes Lead the Market
   Buyers remain willing to pay a premium for homes that are renovated or updated. Sellers planning to list this year may benefit from targeted improvements such as refreshed landscaping, cosmetic upgrades, or small repairs that enhance overall presentation.

Final Thoughts
While 2026 may bring a slightly more balanced environment, San Diego continues to be one of the strongest and most resilient markets in the country. Whether you are thinking about buying, selling, or preparing for a move later in the year, staying informed will help you make the best decisions for your future.