San Diego Housing Market & Real Estate Update (Feb. 28, 2026)
San Diego, CA – February 28, 2026 – Pricing held up even as closed sales cooled in January; slightly lower mortgage rates could support demand as spring inventory builds.
Housing market snapshot
San Diego remains a competitive market, with prices staying elevated even as activity shows signs of cooling. Recent citywide market trackers point to steady pricing alongside a slower pace of closed sales, a combination that can feel confusing for both buyers and sellers.
- Redfin (January 2026): median sale price about $970K (+3.2% YoY).
- Redfin (January 2026): homes averaged 43 days on market, with 567 sales closed (-11% YoY).
- Zillow (through Jan. 31, 2026): typical home value about $974K.
- Zillow (through Jan. 31, 2026): 2,556 homes listed for sale and 651 new listings.
- Mortgage rates: the U.S. average 30-year fixed slipped to 5.98% in late February.
Rates, affordability, and momentum
Lower borrowing costs can help bring some buyers off the sidelines, especially for households that paused their search during higher-rate periods. Even so, affordability still depends heavily on available inventory and how quickly new listings come to market. In a high-cost area, small changes in rates can influence monthly payments, but the bigger question for many shoppers remains whether they can find the right home without intense bidding pressure.
Local pipeline and policy watch
On the policy side, the City’s 2026 Land Development Code update is in the public-hearing process. This package includes proposed zoning and permitting changes, and it has included a Planning Commission hearing on Feb. 19, 2026. For homeowners and builders, these discussions can matter over time because rules and timelines can affect what gets built and how quickly projects move forward.
What’s for sale: practical ways to shop
If you’re actively looking, it may help to sort listings by days on market and recent price changes. Homes that have been sitting longer may be more open to negotiation than fresh, well-staged listings that can still attract multiple offers. Comparing similar homes that recently went pending can also help set expectations on what is moving versus what is not.