San Diego Real Estate Market Update: March 2026

by Shirin Kheshti — Updated March 16, 2026

The San Diego housing market in early 2026 is showing the steadiest fundamentals we have seen in years. The median sales price for detached homes in San Diego County reached $1,089,795 in February 2026, up 2.1 percent year over year. Mortgage rates briefly dropped below 6 percent for the first time since September 2022. And inventory remains tight at 2.0 months of supply, well under the 4 to 6 months that defines a balanced market. After nearly twenty years working this market, this is what I would call a healthy reset, not a frenzy and not a slowdown.

For buyers, this means you are not entering a runaway market. For sellers, it means the equity you have built is holding. Coastal neighborhoods, including Point Loma and Ocean Beach, continue to outperform the county median.

Mortgage Rates Fell Below 6 Percent for the First Time Since 2022

On February 26, 2026, the average 30-year fixed-rate mortgage dropped to 5.98 percent, the lowest reading since September 2022. To put that in real terms: on a $1,000,000 purchase, today's rates save roughly $550 to $600 per month compared to where rates sat at their 2023 peak. That difference reshapes what is possible for a lot of buyers, especially first-time and move-up purchasers who had been priced out at higher rates.

Rates have since ticked back up slightly to around 6.11 percent as of mid-March, but they remain well below the 6.65 percent average from a year ago. The direction of travel over the past twelve months is clearly downward, and most forecasters expect rates to stay in the 6 percent range through 2026 with potential to dip toward the high fives by year end.

San Diego Inventory and Days on Market

Supply is still the defining feature of this market. Detached homes averaged 35 days on market in February 2026 with just 2.0 months of supply countywide. A balanced market would show 4 to 6 months of supply. We are nowhere near that.

What this means in practice: sellers who price correctly and prepare their homes well are not waiting long. Well-priced single-family homes in coastal San Diego neighborhoods are regularly seeing multiple offers within the first week. Overpriced homes are sitting, and the gap between the two outcomes is widening every month.

The condo and townhome segment is showing more room for negotiation, with inventory growing year over year and median prices ticking down slightly. That flexibility is worth noting if you are a buyer working within a specific budget or looking at attached product specifically.

Coastal Neighborhood Breakdown: What I Am Watching

Countywide data is useful context, but it masks meaningful differences between neighborhoods. Here is the read on the coastal pockets I focus on most.

Point Loma and Ocean Beach (92106 / 92107). Single-family inventory in these zip codes remains limited. Median prices in Point Loma range from approximately $1.2 million to over $2 million depending on the sub-neighborhood, with waterfront and bay-view homes commanding significantly more. Buyers here are local, loyal, and patient. They know the market and they will not overpay for a home priced with wishful thinking. The first two weeks on market matter most. For a deeper read on this submarket, see The Point Loma Real Estate Market: What Local Buyers and Sellers Need to Know in 2025–2026.

Bankers Hill, Hillcrest, and Mission Hills (92103). This central San Diego corridor is one of the most interesting markets in the city right now. The detached single-family median in 92103 sits at $1,751,069 year to date, up 7.4 percent year over year per the San Diego Association of REALTORS. Supply is 2.2 months. The condo segment, however, is offering buyers more leverage than they have had in several years, with the attached median at $801,000 and supply at 2.6 months. If you have been priced out of the central San Diego attached market, 2026 is the most negotiable it has been in a while. More on this in the Bankers Hill: A San Diego Neighborhood Guide.

La Jolla and the coastal corridor. The high end of the market, homes above $2 million, has seen some softening in velocity. Buyers at that price point have more options than they did a year ago and are negotiating accordingly. Well-presented homes with genuine coastal positioning are still finding serious buyers, but the days of automatic over-asking offers are largely behind us at this tier.

Coronado. Coronado remains its own micro-market. Very low inventory, very loyal buyer pool. If something hits the market in the $1.5 to $2.5 million range and is priced honestly, expect offers quickly.

What This Means If You Are Buying in San Diego Right Now

The buyers who are winning right now share a few things in common. They are pre-approved and ready to move, they know what they want and why, and they are not waiting for the perfect moment that may never come. With rates down more than half a percentage point compared to this time last year and inventory still tight, spring 2026 is a legitimate window. Not a frenzy, but an opportunity worth taking seriously.

That said, do not confuse a slightly slower pace with a buyer's market. Inventory for detached homes is still firmly in seller territory. If you find something that works, do not overthink it into someone else's hands. The buyers I see succeeding in this market read inspections carefully, negotiate where there is genuine room, and move with intention when the right home appears.

If you are still figuring out which neighborhoods fit your lifestyle, the Best Neighborhoods in San Diego for Different Lifestyles post is a good place to start.

What This Means If You Are Selling in San Diego Right Now

Preparation and pricing strategy matter more right now than they have in years. Buyers are more informed and more selective than they were during the frenzy of 2021 and 2022, and they can tell the difference between a home that is ready and one that is not. The 35-day average on market includes homes that sat too long and dragged that number up. Homes that came out sharp, in the right price range with strong presentation, are still seeing competitive activity within the first week.

The sellers I see getting the best results are not cutting corners on presentation or testing the market with a high price. They are coming in thoughtful, strategic, and ready. The 98 to 99 percent sale-to-list ratio in coastal San Diego tells the story: when you price accurately, you sell at or near asking. When you do not, you accumulate days on market and those days become a negotiating liability.

For a fuller view of the spring 2026 picture, the April 2026 San Diego Housing Market Update shows how these numbers continued to evolve into the heart of the season.

Frequently Asked Questions About the San Diego Housing Market

What is the median home price in San Diego right now?

As of February 2026, the median sales price for detached single-family homes in San Diego County reached $1,089,795, up 2.1 percent year over year. Coastal neighborhoods like Point Loma and Bankers Hill consistently track above the county median, with detached medians ranging from $1.2 million to over $2 million depending on the submarket and view profile.

What are mortgage rates doing in San Diego in 2026?

The average 30-year fixed mortgage rate dropped to 5.98 percent on February 26, 2026, the lowest level since September 2022. Rates have since ticked back up slightly to around 6.11 percent as of mid-March, but remain well below the 6.65 percent reading from a year earlier. Most forecasters expect rates to stay in the 6 percent range through 2026.

Is it a buyer's or seller's market in San Diego right now?

For detached single-family homes, conditions still favor sellers, with just 2.0 months of supply in February 2026, well below the 4 to 6 months that defines a balanced market. The condo and townhome segment is closer to balanced and is offering buyers meaningfully more negotiating room than it has in several years.

How long are San Diego homes sitting on the market?

Detached homes averaged 35 days on market in February 2026 countywide. Well-priced, well-presented homes are still selling significantly faster than that average, often within the first one to two weeks. The homes pulling that countywide number up are typically overpriced or carrying deferred maintenance.

Are San Diego home prices going to drop in 2026?

The data does not support a countywide price drop in 2026. Detached single-family median prices are up 2.1 percent year over year as of February, inventory remains tight, and most forecasters project gradual appreciation of 2 to 4 percent through the year. The attached condo segment has softened slightly, but the broader market is showing stability rather than decline.

Should I wait for lower rates before buying in San Diego?

Waiting for lower rates carries its own risk. Rates have already dropped meaningfully from their 2023 peak, and inventory remains constrained. If rates fall further, more buyers will re-enter the market and competition will increase. The buyers I see succeeding right now are the ones who have a number that works for their life today and are willing to act on it rather than wait for a perfect moment that may not arrive.

About Shirin Kheshti

Shirin Kheshti is a Broker Associate with Coldwell Banker West, DRE #01848250. She has specialized in Point Loma, Ocean Beach, and coastal San Diego real estate for nearly 20 years. As a Military Relocation Professional, she also helps service members and military families navigate PCS moves and VA loan purchases throughout San Diego County. Reach her at Shirin@TheSDHome.com or 858.750.5753.