San Diego Housing Market Update – May 2026- Is Stability is here?
- Jun 8
- 4 min read
If you've been following the housing market lately, you've probably seen headlines suggesting prices are falling.
And depending on which statistic you look at, that can seem true.
But when I dug into the latest numbers, I found a market that's actually much more stable than many people realize.
The biggest takeaway from May?
Home prices across San Diego County are essentially flat, inventory remains limited, and buyers are still active.
That's a very different story than the headlines.
Quick Market Snapshot
San Diego County
Median Home Price: $915,000
Up 1.6% from last year
Homes selling in 28 days
Sellers receiving 98.6% of their asking price
North San Diego County
Median Home Price: $1,029,990
Down 0.7% from last year
Homes selling in 28 days
Sellers receiving 98.4% of their asking price
For homeowners wondering whether values are dropping, these numbers tell me we're seeing a market that's leveling out rather than declining.
What I'm Seeing
One of the reasons the market feels confusing right now is because different reports are telling different stories.
Some detached-home statistics showed larger price declines, while broader countywide numbers show prices holding relatively steady.
What I'm seeing on the ground is that buyers are still buying, but they're being much more selective.
Homes that are priced correctly and show well are still attracting attention. Homes that are overpriced are sitting.
That's very different from the market we experienced a few years ago, but it's also far from a market crash.
North County Housing Market
North County continues to be one of the strongest and most stable areas in the county.
Closed sales increased 0.4%
Homes are still selling in about 28 days
Sellers are receiving 98.4% of their asking price
While prices are essentially flat compared to last year, demand remains healthy and inventory remains relatively tight.
What we're seeing instead
In North County detached homes:
Pending sales up 16.5%
Closed sales up 9.7%
Inventory down 26.9%
Sellers receiving 98.4% of asking price
Days on market unchanged at 25 days
Those aren't the characteristics of a market that's falling apart.
They're the characteristics of a market where buyers are still active and inventory remains relatively tight.
South County Housing Market
South County was the standout performer this month.
Median prices increased 6.4%
Closed sales increased 10.6%
Homes sold in just 23 days
Sellers received 100.4% of asking price
That's a strong market by almost every measure.
East County Housing Market
East County continues to show steady performance.
Median prices increased 0.6%
Closed sales increased 0.3%
Homes sold in 32 days
Nothing dramatic here, which isn't necessarily a bad thing. Stability can be a very healthy sign.
Metro San Diego Housing Market
Metro San Diego saw a slight slowdown compared to other areas.
Median prices declined 2.3%
Closed sales declined 2.7%
Homes sold in 27 days
Even so, sellers are still receiving over 98% of their asking price and inventory remains relatively balanced.
What This Means for Buyers
Buyers have more room to negotiate today than they did a few years ago.
There are fewer bidding wars, more opportunities for credits and repairs, and less pressure to make rushed decisions.
That said, desirable homes are still moving quickly, especially when they're priced well.
What This Means for Sellers
Today's market rewards preparation.
The homes that are selling are typically the ones that are priced appropriately, marketed well, and show beautifully.
Buyers are paying attention to value, and they have more options than they did a few years ago.
Interest Rates
Below are current mortgage rate averages and recent changes, updated regularly.
Final Thoughts
The San Diego housing market continues to normalize.
Prices are no longer rising at the pace they were a few years ago, but we're also not seeing widespread declines across the county.
For now, the market remains relatively balanced, with different areas performing differently depending on price point, inventory, and buyer demand.
Real estate is local.
The numbers for your neighborhood may look very different from the countywide averages.
If you're curious about your home's value, thinking about buying, or considering a move in the next year, I'd be happy to help.
San Diego Housing Market FAQs
Will home prices ever go down in San Diego?
Yes, San Diego home prices are currently experiencing slight declines and can experience short-term drops due to higher interest rates and seasonal fluctuations. However, severe price drops or a major market crash are unlikely
What is happening with inventory?
Active listings are down 12.8 percent year over year countywide and 27.8 percent in North County. Months of supply increased seasonally to 2.8 in both markets but remains below three months, keeping overall inventory relatively tight.
Are homes taking longer to sell?
Yes. Days on market rose to 37 days countywide and 32 days in North County, increases of 12.1 percent and 18.5 percent respectively. Even so, well-priced homes continue to attract buyers.
Are sales increasing?
Sold units declined slightly year over year, down 2.9 percent countywide and 1.8 percent in North County. Activity remains measured as buyers adjust to higher mortgage rates.
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