Rachel's Blog

If you've been watching the San Diego housing market and wondering what's really going on — you're not alone. The headlines can be confusing, and the truth is that what's happening countywide doesn't always reflect what's happening in your specific neighborhood. Here's a clear, honest snapshot of where things stand right now.
 
THE BIG PICTURE
 
San Diego's housing market in 2026 is best described as a recalibration — not a crash, not a boom, but a meaningful shift toward balance that hasn't existed since before the pandemic.
 
Here's what the numbers look like right now:
 
— Median home price for single-family homes: approximately $1,074,000 (up 5.8% year-over-year as of April 2026)
— Active inventory: up 24% year-over-year, giving buyers significantly more options than they've had in years
— Days on market: increasing across the board, up 9–13 days depending on the neighborhood compared to this time last year
— Mortgage rates: averaging 6.33–6.36% for a 30-year fixed — down from 6.81% in May 2025 and continuing to ease
— Conforming loan limit: $1,104,000 for San Diego County — the highest ever, opening conventional financing to more buyers
 
What this adds up to: buyers have more leverage than they've had in four years. Sellers can still achieve strong prices, but execution — pricing, preparation, and timing — matters more than it did at the peak of the market.
 
WHAT'S DRIVING THE MARKET RIGHT NOW
 
1. More inventory, more choice for buyers
The single biggest shift in 2026 is inventory. San Diego County has more active listings than at any point since 2020. That means buyers are no longer forced to make panic decisions on the first home they see. They're taking their time, comparing options, and negotiating terms they couldn't have dreamed of in 2021.
 
For sellers, this means your home is competing with more options than it was a year ago. Presentation and pricing from day one have never mattered more.
 
2. Mortgage rates are easing — slowly
Rates have dropped meaningfully from their 2023 highs, and forecasters expect continued gradual easing toward the high 5% range by late 2026. Each step down in rates brings more buyers off the sidelines — particularly in the $500K–$1M range, which is expected to see the biggest jump in sales activity.
 
If you've been waiting for rates to drop before buying, keep in mind: when rates drop significantly, competition increases and prices tend to follow. Buying now with the option to refinance later is a strategy worth discussing with your lender.
 
3. Pricing discipline is essential for sellers
Homes priced accurately for today's market are selling. Homes priced based on 2022 peak values are sitting — and listings that sit too long develop a stigma that's hard to overcome. The data is clear: price reductions are up across the county, and homes that started too high consistently net less than homes that were priced right from the start.
 
4. San Diego remains a supply-constrained market
Despite rising inventory, San Diego's structural housing shortage hasn't gone away. Limited land, restrictive zoning, and high construction costs continue to put a floor under prices. This is why even in a recalibrating market, San Diego home values have held up far better than many other major U.S. cities.
 
WHAT THIS MEANS FOR YOU
 
**If you're thinking about buying:** This is arguably the best buying environment San Diego has offered in four years. More homes to choose from, more days to make a decision, and slightly more negotiating room than buyers have had since before the pandemic. Mortgage rates are still elevated but trending down — and prices in most neighborhoods remain stable.
 
**If you're thinking about selling:** You can absolutely still sell well in this market — but it requires a smarter approach than it did two years ago. Accurate pricing, strong preparation, and strategic marketing make the difference between a home that sells in two weeks and one that sits for two months.
 
**If you're watching from the sidelines:** San Diego's fundamentals — desirable climate, limited land, strong employment base, and world-class lifestyle — continue to support long-term value. Timing the market perfectly is nearly impossible. Buying a well-priced home in a neighborhood you love and holding it remains one of the soundest financial decisions you can make.
 
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Have questions about what this market means for your specific situation? I'm always happy to talk through it — no obligation, no pressure. Reach out anytime.
 
— Rachel Zazzera
San Diego Real Estate Broker | DRE #01925193
619.828.3225 | [email protected]

6241 Lake Lucerne Drive in San Carlos was listed and SOLD by Rachel Zazzera.  The list price was $750,000 and the sales price was $740,000 and SOLD for all CASH!

This location in San Carlos can't get much better: 2 block walk to Lake Murray, 1 mile to Cowles Mountain and minutes to Grossmont center, SDSU & more! A wonderful home to entertain in with its pool-sized yard, family room with attached bar area, and formal dining. Rarely seen split-level master bedroom with built-in vanity, walk-in closet, and juliet balcony overlooking the entry. Enjoy high ceilings, central a/c, dual-pane windows and welcoming entry. Take a peak outside and grab a view Cowles Mountain!

6241 Lake Lucerne Drive in San Carlos was listed and SOLD by Rachel Zazzera. For more information, please contact Rachel Zazzera at 619.828.3225 or [email protected] DRE#01925193

6573 Carthage Street in Allied Gardens was listed and SOLD by Rachel Zazzera.  The sales price was $695,000!

Welcome to this gorgeous Allied Gardens DREAM home. Enjoy 3 bdrms + optional 4th bdrm, office, or den. Owners take real pride in ownership with their stylish-remodeled kitchen (floating wood shelves, white cabinetry, sleek gray quartz counter-tops), upgraded bathrooms, refinished original hardwood floors, fresh paint, dual-pane windows & upgraded electrical. Don't miss the backyard oasis: relax or entertain under the large shaded patio, enjoy the low maintenance landscaping, gather around the fire-pit!

6573 Carthage Street in Allied Gardens was listed and SOLD by Rachel Zazzera. For more information, please contact Rachel Zazzera at 619.828.3225 or [email protected] DRE#01925193