Housing Market is `Marching in Place,’ as Higher Rates Stall Recovery, says San Diego Association of Realtors

With steady home prices and home sales in San Diego County in April 2026, local real estate officials say the residential market is “marching in place” as higher mortgage interest rates continue to stall a dramatic market recovery.

In its monthly report on the residential real estate market, the Greater San Diego Association of Realtors (SDAR) reports the median sales price for single-family detached homes in San Diego County was $1.1 million in April 2026, which was identical to March 2026 and comparable to the $1,089,795 price in February 2026, the $1,070,000 price in January 2026 and the $1,050,000 prices for the 2025 months of December and November.

The median sales price in April 2026 for attached homes, including townhomes and condos, was $680,000, a slight increase from the $670,000 price in March 2026 and comparable to $660,000 in February 2026, $632,000 in January 2026, $680,000 in December 2025 and $660,000 in November 2025.

SDAR said the median sales price in San Diego County for all types of residential properties, including single-family homes, townhomes and condos, remained flat at $900,000 in April 2026, which was the same figure in February and January 2026 and the 2025 months of December, November, October, September, August, July, June and May.

In a year-over-year comparison between April 2026 and April 2025, the median sales price for all property types including single-family homes, townhomes and condos, was higher by 1.7%, an improvement from the previous month’s year-over-year increase of 0.8%, said SDAR. The median represents a sales price where half of the homes sold above it and half below it.

“The real estate market is modestly holding its own due with increases in home prices at only 1.7% year-over-year,” said Karen Van Ness, 2026 president, SDAR. “Despite mixed economic signals and lagging consumer confidence, I would describe the market as marching in place.

“Mortgage rates are lower from a year ago, but the spring rebound anticipated at the start of the year has been delayed by higher rates. Generally speaking, higher mortgage rates, battered by the shifting waves of geopolitical tension, are stalling any sales recovery.”

Closed sales in April 2026 decreased 3.5% for detached homes and 1.6% for attached homes, a contrast to increases in March 2026 by 5.2% for detached homes and 9.7% for attached homes.

The price range with the largest gain in closed sales for detached homes was the $5 million-and-above range with a 12.3% increase.

For all property types in San Diego in April 2026, SDAR said closed sales increased 6.8% year-over-year and the median sales price increased 1.7% year-over-year.

SDAR’s monthly report also said the price range that tended to sell the quickest in April 2026 was 37 days for single-family detached homes priced at between $750,000 and $1 million. In comparison, the timeframe was 36 days for single-family detached homes priced at between $750,000 and $1 million in March, February and January of 2026.

Meanwhile, the price range that tended to sell the slowest in April 2026 was single-family detached homes prices at $5 million and above, which took 75 days to sell. In comparison, the timeframe for single-family detached homes priced at $5 million and above in March and February of 2026 was 76 days. Timeframes for other months included 74 days in January 2026 and December 2025, 75 days in November 2025, 72 days in October 2025, 66 days in September 2025 and 62 days in August 2025.

For the 12-month period spanning from April 2026 to May 2025, pending sales for all property types in San Diego were up 1.6% overall, a contrast to a 0.5% increase between March 2026 and April 2025 and a decrease of 1.0% between February 2026 and March 2025.

The strongest increases for pending sales posted in April 2026 included 12.3% for detached homes priced at $5 million and above, 7.3% for detached homes sized at between 2,001 and 3,000 square feet and 3.0% for condos and townhomes. A pending sale means the seller has accepted an offer from a buyer, but the transaction is not yet finalized.

Van Ness said even with the recent spike in mortgage rates, as the spring selling season kicks-in, buyers who waited out last year's market are entering on slightly better terms this spring.

“Buyers and sellers who are not in a position to wait are coming off the sidelines and moving forward with their plans to buy and sell,” she said. “At the end of the day getting into a home to begin the savings realized through appreciation outweighs the alternative.

“I am seeing many buyers choosing to enter the market because they need to make a move more often than because they want to make a move. For the buyers who don’t have to move they are taking advantage of the time to decide as they wait for overpriced homes to come in line with the current market. There are many others who are waiting in the wings for mortgage conditions to improve further.”

Inventory levels for all San Diego County property types in April were down 12.8%, which was comparable to an 11.2% drop in March 2026, but an improvement from February 2026 when inventory decreased 15.4% for all properties.

“Inventory still remains tight,” said Van Ness. “If properties are priced to current market conditions multiple offers are being realized which is holding up the sellers-market.

“Days-on-market is lengthening, which further indicates that consumers are closely monitoring the pricing of properties and not jumping in too quickly, taking their time before making a decision to buy.”

Van Ness also said slightly friendlier conditions for buyers and sellers will occur if rates fall back to the 6% range seen earlier this year.

“I’m expecting a relatively balanced market throughout the year,” she said. “Sales are inching higher and the growth in income is outpacing home price gains, finally. The growth in income is significant and a healthy bellwether for the real estate market. There are still deals out there if you know where to look.”

Nationally, there were 1.36 million homes for sales heading into April 2026, representing an inventory increase of 2.3% year-over-year and a 4.1-month supply at the current sales pace, according to the National Association of Realtors (NAR).

The median existing-home price rose 1.4% year-over-year to $408,800 in April 2026, which was the 33rd consecutive month for over-year-year increases as limited inventory continued to put upward pressure on prices, NAR said.

U.S. existing home sales in April 2026 fell 3.6% month-over-month and 1.0% year-over-year to a seasonally-adjusted annual rate of 3.98 million homes, as tight supply and ongoing affordability challenges constrained activity, said NAR.

Meanwhile, U.S. pending home sales rose for the second consecutive month, climbing 1.5% month-over-month, said NAR. Contract signings advanced in the South and Northeast, but declined in the Midwest and West. Year-over-year pending home sales were higher in the South, but lower in the Northeast, Midwest and West.

For more housing market and economic data, visit www.sdar.com.