Regional Overview

FEBRUARY 2026

SAN DIEGO COUNTY
Housing inventory is down 11.2% compared to this time last year, though it has ticked up slightly from last month and is expected to rise as we approach the spring market. At the same time, typical seasonal slowdowns in new listings have tightened conditions further, limiting buyer options. Much of the constrained supply can be attributed to the "rate lock-in effect," with homeowners holding historically low mortgage rates remaining reluctant to sell. Meanwhile, recently declining mortgage rates, along with slower home price growth, are helping spur buyer activity. Prices are expected to remain relatively stable overall, while luxury segments continue to follow different dynamics.

MONTHS SUPPLY OF INVENTORY
Historically, a 4–6 month supply of inventory (MSI) has been associated with a neutral market — one that doesn't favor either sellers or buyers. A supply of less than 4 months generally favors sellers, while more than 6 months usually favors buyers. MSI can vary significantly between locations and, as illustrated in the table below, across different property types and price ranges.

SELLING TODAY
Market-wide, homes are taking longer to sell today than at the same time last year. As sellers face a slower-than-expected market, careful and deliberate pricing is essential for success. Luxury home sellers, in particular, must tune out the noise suggesting a seller's market in lower price ranges and instead take a calculated approach—emphasizing smart pricing, exceptional marketing, and patience.

Chart and table provided by the Greater San Diego Association of Realtors®. All data from the San Diego MLS. Residential real estate activity in San Diego County comprised of single-family properties, townhomes, and condominiums. Percent changes are calculated using rounded figures. Information deemed reliable but not guaranteed.

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