San Diego & California Market Update: Inventory and Mortgage Rates

The real estate landscape in San Diego and across California is always evolving, but recent shifts in inventory and mortgage rates are making headlines—and impacting both buyers and sellers in meaningful ways.

Inventory: A Tight Market, but Signs of Change

For much of the past year, California—and San Diego in particular—has faced a shortage of homes for sale. This low inventory has fueled competition, with buyers often finding themselves in bidding wars for desirable properties. However, as we step into 2026, there are subtle signs that more homes are coming onto the market. Some homeowners, encouraged by rising values and a stabilizing economy, are deciding it’s finally time to sell.

While inventory is still below historical averages, the slight increase is giving buyers a bit more breathing room. For sellers, it’s still a great time to list, but pricing competitively and preparing your home for market are more important than ever.

Mortgage Rates: A Rollercoaster Ride

Mortgage rates have seen their fair share of ups and downs lately. After reaching historic lows a couple of years ago, rates climbed steadily, making monthly payments more expensive for buyers. Recently, though, rates have begun to stabilize, offering a glimmer of hope for those waiting on the sidelines.

For buyers, locking in a rate now could mean securing a better deal before any future increases. For sellers, stabilized rates may bring more motivated buyers to the table, eager to make a move before conditions change again.

What Buyers and Sellers Should Know

• Buyers: Stay prepared with pre-approval and be ready to act fast, but know you may have a bit more time to consider your options as inventory improves.
• Sellers: Homes that are well-presented and priced right are still in high demand, but flexibility and a strong marketing plan can make all the difference.

Whether you’re buying or selling, staying informed and working with a knowledgeable real estate professional can help you navigate these changes with confidence. The San Diego and California markets remain dynamic, and opportunities abound for those who are ready.