February 2026 San Diego Housing Market Performance

How’s the Market?

This is the question I’m asked most often right now. My answer lately has been the same every time: “It’s interesting.” Not bad. Not crazy. Just… interesting.

I’m not a big believer in the typical real estate response that the market is always “great.” The truth is, there’s no scenario where it’s perfect for both buyers and sellers at the same time. Even in a balanced market, both sides usually end up compromising on price or terms, which is exactly how a healthy market should work.

But right now, the dynamics are a little different.

The end of 2025 was slow. Buyer activity had dropped off significantly, and most sellers prefer not to sell during the holidays. As a result, many homes that closed in January were actually negotiated during that slower December market, when buyers had more leverage and sellers were more willing to negotiate.

2026 brought interest rates below 6%, and many of the buyers who had been sitting on the sidelines jumped back into the market, although still cautiously.

The result is a market with very specific demand.

Homes that need a lot of work and aren’t priced accordingly are still sitting. Homes that sellers believe are “updated” but those updates happened 20 years ago are also sitting.

But homes that are priced well, especially those under $1,000,000, are often going under contract within the first week and sometimes receiving multiple offers above asking price, along with shortened contingencies and stronger terms for sellers.

Right now, the most in-demand home in North County is fairly consistent: a single-story, well-maintained home under $1,00,000 with low or no HOA.

For many homeowners, especially those who have owned their home for several years, this kind of movement can translate into a significant increase in equity in a relatively short period of time. I’ve had several conversations recently with homeowners who were surprised to learn how much their home value had changed since January sales.

What does this mean if you’re thinking about buying or selling?

For buyers, preparation is critical. Make sure your financing is solid and be ready to compete if the right home comes along. When determining a fair price, your agent shouldn’t just be looking at the last comparable sale. They should also be considering the market conditions at the time that home went under contract and adjusting accordingly.

For sellers, this can be a very strong window of opportunity. Buyer activity is currently healthy, but there is still some uncertainty in the broader economy and global events. Pricing strategically and presenting your home in the best possible way can generate strong early demand while buyers remain active.

If you’ve been wondering whether this year might be the right time to sell, it may be worth having a quick conversation. Even if you’re just curious about your home’s current value or what preparation might look like, I’m always happy to walk you through the numbers and what I’m seeing locally.

February 2026 San Diego Housing Market Performance