San Diego home values are predicted to decline about 0.9% through May 2026.
Mortgage rates expected to drop in 2026, potentially boosting buyer demand and home prices.
The market will likely see a slight dip in 2025 before modest growth in 2026.
Limited housing inventory will keep competition high despite short-term price softening.
Neighborhood-specific demand will influence price trends within San Diego’s overall balanced market.
