As of late 2025, the San Diego housing market is expected to remain stable with only mild fluctuations ahead.
Home values, currently averaging around $941,500, are forecast to dip modestly by up to 2% through mid-2026, according to Zillow projections.
This slight softening reflects a healthy correction rather than a downturn, aligning with trends seen in other major California metros.
Analysts anticipate a gradual rebound in late 2026 as mortgage rates ease and sales activity strengthens.
Overall, forecasts point to a steady 2026 recovery phase, supported by resilient demand and improving affordability.
What to Expect for San Diego Home Prices Through 2026
