A new year always brings new questions about the real estate market, and 2026 is no exception. Buyers, sellers, and homeowners across San Diego are watching closely to see how the year may unfold. While the market will continue to shift and evolve, several key trends are already emerging.

Here is a look at what experts believe will shape San Diego real estate in the months ahead.

1. Mortgage Rates May Slowly Improve
   Analysts expect mortgage rates to soften as the year progresses, which could help ease affordability challenges. Even slight improvements in rates tend to open the door for more buyers who stepped back in 2025.
2. Inventory Likely to Increase Modestly
   San Diego has faced tight supply for years, but early indicators suggest we may see a mild rise in available homes this year. A bit more inventory could bring a healthier balance between buyers and sellers while still preserving a strong market for well prepared listings.
3. Prices Expected to Rise at a Steady, Slower Pace
   Most forecasts point to stable price appreciation. San Diego continues to benefit from high demand, limited building opportunities, and long term desirability, which supports continued growth even if year over year increases become more moderate.
4. Lifestyle Preferences Will Continue to Influence Moves
   Many buyers continue to prioritize space, flexibility, and outdoor features in their home search. San Diego remains one of the most appealing markets for those looking for a better lifestyle and a mild climate, keeping demand steady throughout the region.
5. Well Maintained Homes Will Attract the Most Interest
   Homes that are updated, move in ready, or thoughtfully improved tend to sell more quickly and for stronger prices. Sellers planning to list in 2026 may want to consider small upgrades that help their home stand out.

In Summary
San Diego enters 2026 in a position of strength, with a market that remains competitive but is moving toward better balance. Whether you are planning to buy or sell this year, staying informed about these trends can help you make confident and strategic decisions.