San Diego Home Prices Jump 8% Year-on-Year Amid Tight Inventory

San Diego home prices rose 8% in the second quarter of 2026 compared to the same period last year, marking the city's highest year-on-year quarterly jump since late 2022, according to new figures from the Greater San Diego Association of Realtors.

The acceleration in price growth comes as summer demand collides with a chronic shortage of homes for sale, frustrating many would-be buyers as July gets underway. The market's resilience has defied fears of a slowdown, keeping pressure on both buyers and renters at a time when the broader global outlook has become increasingly volatile.

Short Supply Stokes Competition in Key Neighborhoods

Much of the steam is coming from established neighborhoods strapped for listings. Point Loma saw its median detached home price rise to $1.46 million in Q2, up 11% from one year ago, according to local brokerage Ascent Real Estate. North Park, long popular with younger buyers trading up from condos, posted a 9% annual gain, with the median sale for a single-family home hitting $1.1 million by late June. The highly anticipated opening of the new Del Mar Union School campus on Carmel Valley Road is also fueling competition in the northern suburbs, where days-on-market dropped below three weeks for the first time this year.

The University of San Diego’s Center for Real Estate points to a 13% drop in new listings citywide versus Q2 2025. That’s the sharpest supply crunch San Diego has faced since 2021, prompting a wave of open-house bidding wars, especially in the Interstate 5 corridor between Pacific Beach and Clairemont. Even East Village condos, traditionally slower to move, ticked up 5% year-on-year, with the median price landing at $730,000 after a series of strong closings in May at The Legend and Parkloft buildings.

Data Shows Upward Pressure Even as Interest Rates Stay Elevated

Official data from CoreLogic released July 2 confirms the persistent upward pressure. The average single-family home price in San Diego County reached $990,700 in June—an all-time local record and up 8% from $916,380 a year earlier. The luxury segment—defined by homes priced above $2.5 million—expanded fastest in La Jolla and Mission Hills, where agents at Willis Allen Real Estate now report some properties attracting offers 15% above list price. Meanwhile, rents climbed 6% citywide amid the ongoing tight squeeze, with Mission Valley one-bedrooms renting for an average $2,820 per month, up from $2,670 last summer, according to ApartmentList’s latest rental index.

The continued price climb defies predictions from late last year that elevated mortgage rates—still hovering near 6.4% for a 30-year fixed loan—would finally cool the area’s housing market. Instead, the supply crunch combined with ongoing demand from both local upgraders and out-of-state buyers appears to be outweighing rate pressure, at least in the city’s most sought-after neighborhoods.

Looking ahead, local realtors expect another busy quarter but advise buyers to brace for few bargains. "Serious buyers should be pre-approved and ready to make decisions fast," said an agent at Big Block Realty, citing July's active open house calendar along Adams Avenue and in Mira Mesa. Some relief may be on the horizon: the city's recently expanded ADU (accessory dwelling unit) program aims to add hundreds of new options over the next year, particularly in neighborhoods like Normal Heights and South Park. But for now, the median price upswing looks set to persist into the fall, making this summer a critical moment for anyone hoping to get into—or move up in—the San Diego housing market.