San Diego Home Prices Now Versus the 2021 Boom: A Market Reality Check

San Diego’s median home price hit $966,000 in June, 2026, capping a spring surge that’s a far cry from the frenzied spike of 2021 but still up nearly 6% from last year. Competition is moderating in once red-hot pockets like North Park and University City, as inventory ticks upward and affordability constraints reshuffle the buyer pool.

This matters because the region’s rapid growth during the pandemic “boom cycle” collided with today’s climate of high interest rates and economic caution. Back in 2021, a two-bedroom in Point Loma would spark a bidding war—now, properties on Rosecrans Street and El Cajon Boulevard linger on the market for weeks rather than hours.

2021 Boom Bears Long Shadows

Real estate insiders at the Greater San Diego Association of Realtors say the city logged 2,310 homes sold in June, down from over 3,000 monthly during the 2021 frenzy but a slight uptick from last year’s dour numbers. In South Park, at least three homes listed above $1.1 million in late May remain unsold after four weeks—a rare sight in the pandemic heyday. On the luxury side, La Jolla’s coastal inventory is up 17% year-over-year, according to John Reeves, a local broker tracking weekly resets between Tourmaline Street and Coast Walk Trail.

Statistically, mortgage rates are the difference-maker. The average 30-year fixed rate is sitting at 6.8%, sharply higher than sub-3% loans that fueled the 2021 blowout. The California Association of Realtors notes that the price-to-income ratio for San Diego County stands at 10.5—still unaffordable for many, but improved from the nosebleed peak of 12.1 reached in 2022.

Deeper Inventory, Fewer Bidding Wars

Sellers aiming for record-breaking prices are feeling a pinch. Open houses on 30th Street in North Park draw more lookers than offers, and price reductions are visible in the MLS data. New residential developments, like Kilroy Realty’s mixed-use project at Pacific Station in Encinitas, are emphasizing smaller floorplans after learning the lesson of 2021’s oversized, ultra-luxury misses.

What comes next? Buyers still face hefty hurdles, but patience is getting rewarded: nearly 21% of existing listings in the county saw price cuts in June. First-time buyers looking in City Heights or Chula Vista should move quickly on new listings, but can finally afford to skip the 24-hour decision window that defined the last boom. For sellers, pricing realism is key—overreaching costs time and, often, final sales. July promises a steadier, if still elevated, market as the city heads into peak summer.