San Diego Housing Market Update: Pending Home Sales Fall 6% as Buyers Gain Leverage in 2026

According to Redfin’s latest housing market update, pending U.S. home sales fell 5.8 percent year over year during the four weeks ending February 15, with just over 70,000 homes going under contract nationwide. The typical home is now taking 67 days to secure a buyer, the longest span in nearly seven years. Meanwhile, data from the San Diego Association of REALTORS® shows that although local inventory remains tighter than the national average, days on market have increased compared to peak pandemic conditions and the pace of sales has moderated, signaling a market that is cooling but not reversing.

Let’s break it down:

What’s Going On?

The housing market is slowing down.

Fewer people are buying homes compared to last year. Pending home sales dropped nearly 6 percent nationwide. Homes are taking longer to sell, averaging 67 days on market, the slowest pace in years.

That means buyers are moving more cautiously.

Why Is This Happening?

It mostly comes down to cost.

Home prices remain elevated. The national median sale price sits at $379,176, while San Diego’s median price remains significantly higher.

Mortgage rates are around 6 percent. While that is lower than last year’s peak, it is still roughly double pandemic-era rates.

Monthly mortgage payments nationally average about $2,601, still near record highs.

Even though rates have improved slightly, buying still feels expensive for many households.

On top of that, winter weather slowed activity across much of the country, and some buyers remain cautious due to economic uncertainty.

So many would-be buyers are simply waiting.

What About Sellers?

Sellers are not rushing either.

Nationally, new listings fell 3.1 percent year over year. Some homeowners are hesitant to sell because they locked in much lower mortgage rates years ago. Others are only willing to move if they can achieve top pricing.

In San Diego, inventory remains limited compared to the national months-of-supply figure of 5.6 months. That ongoing supply constraint continues to support pricing locally.

So while demand is softer, supply is also tight.

How Does This Affect San Diego?

San Diego operates differently from many parts of the country.

Inventory remains relatively low by historical standards, which keeps home values elevated. The region’s pricing is still well above the national median.

However, activity has moderated compared to the intense seller’s market of 2021 and 2022.

Homes are sitting a little longer.
Buyers have slightly more negotiating room.
The share of homes selling above asking price has declined nationally, and similar moderation is showing up locally.

This does not suggest a crash.

It suggests the market is adjusting toward more balanced conditions.

So What’s the Real Story?

The narrative is simple:

The housing market is cooling, not collapsing.

Buyers are cautious because affordability is stretched.
Sellers are more selective.
Homes are taking longer to sell.
Negotiating power is slowly becoming more balanced.

San Diego remains supply-constrained and expensive, but even here the market feels more measured compared to peak pandemic years.

What Happens Next?

Spring will be the next major test.

Housing activity typically increases in March and April. If mortgage rates decline further, buyer demand could return quickly. If rates hold near current levels, the market may continue at a slower, steadier pace.

Bottom Line

This is not a crash.

It is a normalization.

For buyers, there may be more leverage than in recent years.
For sellers, pricing strategy and presentation matter more than ever.
For San Diego, limited supply continues to support long-term fundamentals, even as the pace of activity adjusts.

The market is shifting. The key is understanding where leverage exists and positioning accordingly.

Visit TrulySD.com to schedule your private consultation and get a clear understanding of how today’s market conditions affect your next move.

The market is shifting. Let’s make sure you move strategically with it.