Hello!

As I’m looking at the San Diego market heading into February 2026, the overall pace still feels much more balanced than the ultra-competitive market we experienced over the last few years. Home prices have continued to hold fairly steady, with the county median sales price up 2.3% year-over-year to $905,000, but sales activity has slowed noticeably. Closed sales were down more than 16% compared to last January, and new listings also dropped as many sellers continued to sit on the sidelines early in the year. At the same time, buyers are being much more selective, homes are taking longer to sell, and pricing strategy matters more than ever.

Even though the market has cooled from the frenzy we saw during the pandemic years, San Diego still technically leans in favor of sellers overall. The Market Action Index remains at 42, which reflects a slight seller’s advantage, but buyers definitely have more negotiating power and a little more time to make decisions than they’ve had in quite a while. I’m still seeing strong demand for well-priced, move-in ready homes, especially in desirable coastal and central neighborhoods, while overpriced homes are sitting longer and seeing more price adjustments.