San Diego’s housing market is heading into the final months of 2026 with an interesting combination of rising home prices, slower sales, and more negotiating opportunities for buyers.
According to the Greater San Diego Association of REALTORS® (SDAR), the countywide median home price reached $915,000 in October 2026, an increase of 4.2% compared with October 2025. However, closed sales declined 23.1% year over year, suggesting that higher borrowing costs and affordability challenges continue to weigh on buyer activity.
Meanwhile, mortgage rates have eased slightly in recent weeks but remain elevated. Freddie Mac reported an average 30-year fixed mortgage rate of 7.18% as of November 5, 2026.
For buyers and sellers alike, the message is clear: San Diego real estate remains valuable, but pricing, preparation, and local market knowledge are more important than ever.
San Diego Housing Market at a Glance
| Market Indicator | October 2026 | Annual Change |
|---|---|---|
| Median Home Price | $915,000 | +4.2% |
| Closed Sales | 1,613 | -23.1% |
| Homes for Sale | 5,717 | +1.4% |
| Months of Supply | 3.1 | Up from 3.0 |
Source: SDAR October 2026 Monthly Indicators.
San Diego Home Prices Continue to Rise
Despite slower sales activity, San Diego home prices remain higher than they were a year ago.
The median sales price for all residential properties reached $915,000 in October, compared with $878,500 in October 2025.
However, the market looks different depending on the type of property.
| Property Type | October 2026 Median | Annual Change |
|---|---|---|
| Detached Homes | $1,065,000 | +6.5% |
| Attached Homes (Condos and Townhomes) | $658,000 | -0.2% |
| All Residential Properties | $915,000 | +4.2% |
Detached single-family homes continue to show stronger price appreciation, while condominium and townhome prices have remained relatively flat.
This difference matters for both buyers and sellers. Buyers considering condos may find more opportunities to negotiate, while sellers of detached homes in desirable neighborhoods may still benefit from relatively limited competition.
Home Sales Slow Significantly
San Diego County recorded 1,613 closed home sales in October 2026, compared with 2,098 during the same month last year. That represents a decline of 23.1%.
Pending sales, which represent properties with accepted offers, also declined 25.2% year over year.
These figures indicate that many potential buyers remain cautious, particularly as mortgage payments continue to consume a substantial portion of household budgets.
However, slower sales do not necessarily mean home values are falling. San Diego’s housing market continues to be shaped by limited supply, desirable neighborhoods, and homeowners who are reluctant to give up existing low-rate mortgages.
Inventory Offers Buyers More Choices
There were 5,717 homes available for sale in San Diego County at the end of October, up 1.4% from a year earlier.
The county had approximately 3.1 months of housing inventory, compared with 3.0 months in October 2025.
The distinction between detached and attached homes is particularly important:
- Detached homes: 2.6 months of supply.
- Condos and townhomes: 4.0 months of supply.
A market with approximately four months of inventory generally offers buyers more flexibility than one with only two or three months of supply.
For buyers interested in condominiums or townhomes, this could mean additional time to compare properties, evaluate homeowners association costs, and negotiate favorable terms.
How Long Are Homes Staying on the Market?
The average time on market, as reported by SDAR, was 42 days in October 2026, compared with 43 days a year earlier.
Detached homes averaged 39 days, while attached homes averaged 46 days.
Although buyer demand has softened, well-maintained homes priced appropriately can still attract attention. Properties priced above comparable recent sales may face longer marketing periods or require price adjustments.
Sellers should pay close attention to recent transactions in their specific neighborhood rather than relying solely on countywide averages.
Mortgage Rates Remain a Challenge
Mortgage rates continue to be one of the biggest factors affecting San Diego housing affordability.
According to Freddie Mac’s Primary Mortgage Market Survey for November 5, 2026:
| Mortgage Type | Average Rate |
|---|---|
| 30-Year Fixed | 7.18% |
| 15-Year Fixed | 6.57% |
The 30-year rate has declined from 7.24% the previous week, marking its third consecutive weekly decline. However, it remains above the 6.22% average recorded at the same time last year.
For perspective, a $900,000 home purchased with a 20% down payment would require a $720,000 mortgage. At 7.18%, the monthly principal and interest payment would be approximately $4,877, before property taxes, homeowners insurance, or HOA fees.
Even modest changes in mortgage rates can make a meaningful difference in monthly housing expenses, so buyers should carefully evaluate financing options and overall affordability.
What This Means for San Diego Home Buyers
Today’s market may offer opportunities that were harder to find during periods of intense competition.
With fewer transactions and more inventory in certain property categories, qualified buyers may have greater flexibility when negotiating price, repairs, closing costs, or other purchase terms.
However, desirable properties can still attract multiple offers, especially when priced competitively.
Buyers should focus on long-term affordability, neighborhood conditions, and property-specific factors rather than trying to predict the perfect time to enter the market.
What This Means for San Diego Home Sellers
For homeowners considering selling, accurate pricing is increasingly important.
San Diego home values remain relatively strong, particularly for detached properties, but buyers are more selective than they were during the peak of the pandemic-era housing boom.
Professional marketing, attractive presentation, and a pricing strategy based on recent comparable sales can make a substantial difference.
Sellers should also be prepared to evaluate offers based on financing strength, contingencies, and closing timelines—not just the purchase price.
San Diego Housing Market Outlook for the Rest of 2026
As we approach the holiday season, San Diego’s real estate market will likely continue to experience seasonal slowing.
The combination of elevated mortgage rates, affordability challenges, and reduced transaction activity may keep buyers cautious in the coming months.
At the same time, relatively limited detached-home inventory could help support prices, particularly in established and desirable neighborhoods.
The key factors to watch heading into 2027 will be mortgage rate trends, the number of new listings, and whether pending sales begin to recover.
Thinking About Buying or Selling in San Diego?
Every San Diego neighborhood has its own market dynamics. Conditions in Kensington, North Park, Mission Hills, La Jolla, and other communities can differ substantially from countywide averages.
Whether you’re considering purchasing a home, selling a property, or simply curious about your home’s current value, understanding your local market is the best place to start.
Contact Howard Smith Real Estate for personalized guidance and an informed assessment of your real estate options.
Sources: Greater San Diego Association of REALTORS® (SDAR), October 2026 Monthly Indicators; Freddie Mac Primary Mortgage Market Survey, November 5, 2026.
