San Diego Real Estate Outlook: Starting 2026 with Clarity
As we begin a new year, many of my clients are asking the same question:
“What does the market look like now, and where is it headed?”
Well, after several years of a heavily-dominated seller’s market, last years market finally showed a stable, balanced market. While activity remained steady, the pace slowed slightly, giving both buyers and sellers more room to make thoughtful decisions.
What Happened in 2025?
Looking at detached single-family homes across San Diego County over the past 12 months, we saw several important shifts:
New listings increased by 6.2%
Closed sales rose by 3.1%
Days on market increased by 6 days (about 24%)
Median sales price edged up just 0.1%
These numbers reflect a market that is no longer driven by extreme buyer demand and low inventory as we’ve seen in years past. More homes came to market, buyers had more choices, and properties took a bit longer to sell. At the same time, prices remained stable.
What Does This Mean?
In a balanced market, stability is the norm. A home sitting on the market for a week or two (or three) is not a sign that something is wrong. In most cases, it simply means buyers are taking time to evaluate their options.
At the same time, sellers should not expect the same level of multiple-offer competition we saw in past years. In many situations, the strongest interest comes early, and offers after the first week are often more measured and strategic.
That does not mean they should be dismissed.
A lower initial offer does not automatically reflect a lack of value. Sometimes it simply means a buyer is testing the waters, just as some sellers price high to see if anyone will bite. This is where thoughtful negotiation matters.
Strong outcomes today are built through realistic expectations, good communication, and smart counteroffers, not rushing or reacting emotionally.
If you have questions about how these trends apply to your specific situation, I am always happy to talk through your options and help you navigate the process with confidence.
