The coastal San Diego real estate market has entered 2026 at a more measured pace. Activity has moderated compared to the heightened cycles of recent years, yet pricing integrity remains intact and well-positioned properties continue to perform.
Data from the San Diego MLS for the Coastal Central region shows fewer new listings and a decline in overall closed sales year-over-year. Inventory has also contracted, reinforcing that while the tempo has slowed, supply remains constrained relative to demand.
The median sales price has increased 2.3 percent year-over-year to $905,000. Sellers are still receiving an average of 97.1 percent of their original list price. Days on market have risen modestly, reflecting a more selective buyer pool rather than broad market weakness.
This is not a reactive market. It is a strategy-driven one.
Buyers are taking more time to evaluate condition, location, and pricing. Properties that are thoughtfully prepared, professionally marketed, and precisely priced continue to transact at strong levels.
For sellers, the current environment requires discipline. Overpricing is being exposed quickly. Strategic pricing at the outset has a measurable impact on both timeline and outcome.
For buyers, the shift provides slightly more room for due diligence and negotiation. However, desirable homes in neighborhoods such as Point Loma, La Jolla, Sunset Cliffs, and other coastal communities are not lingering indefinitely.
The broader data does not support a correction narrative. Rather, it reflects normalization and a more deliberate market dynamic.
Micro-market distinctions remain critical. A historic home in Point Loma behaves differently from a coastal condominium in La Jolla. Understanding those nuances is essential before making any move.
If you are considering buying or selling in coastal San Diego, reviewing neighborhood-specific trends and current absorption patterns should be the first step before making decisions.
Dawn Leahy
Broker Associate, DRE#01292805
Pacific Sotheby’s International Realty
