The San Diego housing market in January 2026

1. Closed Sales Have Declined.

• Detached Homes: Closed sales fell 12.7% year-over-year. 
• Attached Homes: Closed sales dropped 22.2% year-over-year.
  This indicates a noticeable slowdown in completed transactions compared to last year.

2. Median Sales Prices Are Diverging by Property Type

• Detached Homes: Median price increased 2.0% to $1,070,000.
• Attached Homes: Median price decreased 4.4% to $632,000.
  This suggests stronger demand for single-family homes, while attached properties (condos/townhomes) are seeing price softening.

3. Homes Are Taking Longer to Sell

• Days on Market increased:
• Detached: Up 4.5%
• Attached: Up 10.6%
  Homes are sitting longer before selling, indicating a shift toward a more balanced or buyer-friendly market.

4. New Listings Are Down Year-Over-Year

• Detached New Listings: Fell 20.8% in January 2026 vs. January 2025.
• Attached New Listings: Fell 16.8%.
  Fewer new properties are entering the market, which could help stabilize prices but also reflects seller caution.

5. Affordability Remains a Major Challenge

• The Burns Under/Overpriced Market Index shows San Diego is currently 24% overpriced relative to local incomes. This is significantly lower than in 2022-2024 where it hovered around 40%. San Diego in housing market tends to be in the over priced  level much of the time.
• The Housing-Cost-to-Income Ratio is 61%, meaning housing costs consume a high portion of median household income.
  This affordability gap is pressuring buyer demand and contributing to slower sales in the lower price range homes.

Bottom Line for Buyers & Sellers:

• Sellers should expect longer marketing times and be strategic with pricing, especially for attached homes.
• Buyers may find more negotiating power, particularly in the attached segment, but affordability remains a significant hurdle.
• The market is transitioning toward equilibrium, with slowing sales, mixed price trends, and persistent affordability concerns shaping near-term dynamics.