"What's really happening in the San Diego real estate market?"

Mid-Year 2026 San Diego Real Estate Market Update: From Countywide Trends to Coastal Living As we reach the halfway point of 2026, many homeowners and buyers are asking the same question: "What's really happening in the San Diego real estate market?"

The short answer is that our market continues to show remarkable resilience. While higher mortgage rates have certainly affected affordability, San Diego remains one of the most desirable places to live in the country. Limited inventory, strong demand, and our unmatched lifestyle continue to support home values throughout much of the county.

The Big Picture: San Diego County

Across San Diego County, buyers have become more selective, but they haven't disappeared. Many are simply taking more time to make decisions and looking carefully at monthly payment affordability.

At the same time, inventory remains below historical norms. Many homeowners are holding onto the ultra- low mortgage rates they secured in recent years, which means fewer homes are coming on the market. This lack of supply continues to support home prices despite higher borrowing costs.

For sellers, this is good news. Well-priced homes in desirable locations are still attracting serious buyers and, in some cases, multiple offers.

For buyers, patience and preparation remain key. Opportunities are available, especially for those who understand that real estate is a long-term investment rather than a short-term market timing exercise.

Coastal San Diego Continues to Stand Apart

While countywide trends are important, Coastal San Diego often operates in a category of its own.

Communities like La Jolla, Del Mar, Encinitas, Cardiff, and Coronado benefit from something that can't be created: location. Limited land, proximity to the ocean, walkability, and lifestyle appeal continue to drive demand year after year.

Coastal properties tend to hold their value exceptionally well because there will always be buyers seeking the unique lifestyle these communities offer.

Whether it's morning walks on the beach, ocean views, top-rated schools, or easy access to dining and recreation, the coastal lifestyle remains one of the strongest drivers of real estate demand in San Diego County.

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A Closer Look at Coronado

As someone who specializes in Coronado real estate, I continue to see strong interest from both local and out-of-area buyers.  O

The Coronado market remains unique because it attracts a wide variety of buyers, including military families, retirees, and second-home owners who can take advantage of the flexibility of renting the property as a seasonal rental while they are not using it.

Coronado Village, walkability and proximity to shops, restaurants, schools, and the beach continue to be major selling points.

At Coronado Shores, buyers are drawn to the resort-style amenities, beachfront location, and lock-and-leave convenience that many second-home owners are seeking.

In Coronado Cays, waterfront homes and private boat slips remain highly desirable due to their limited availability and unique lifestyle appeal.

While each neighborhood has its own dynamics, one thing remains consistent: quality properties in desirable locations continue to attract attention.

Looking Ahead

As we move into the second half of 2026, I expect inventory to remain relatively limited and buyer demand to stay steady, particularly in Coastal San Diego.

Mortgage rates will continue to influence affordability, but long-term buyers understand that rates can change while great locations are much harder to find.

For homeowners, today's market continues to offer strong equity positions and stable property values.

For buyers, this may be an opportunity to secure a home before increased inventory or lower interest rates potentially bring more competition back into the market.

Final Thoughts

Real estate is always local, and while national headlines often focus on uncertainty, the story here in San Diego—especially along our coastline—is much more nuanced.

Whether you're considering buying, selling, investing, or simply curious about your home's current value, understanding your local market is the key to making informed decisions.If you'd like a personalized assessment of your property's value or want to discuss opportunities in Coronado or Coastal San Diego, I'd be happy to help.

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Delmira Sumner, ABR®, MRP® Coronado & Coastal San Diego Real Estate Specialist Coldwell Banker West

Coronado Homes