San Diego home prices are expected to continue rising through late 2026, though at a slower, more sustainable pace than previous years. Buyer demand remains strong, supported by lifestyle appeal and improving mortgage rates, keeping sales activity active through the rest of 2026. Limited housing inventory will continue to drive competition, with well-priced homes selling quickly and near asking prices in most areas. High-end and move-up buyers are expected to remain key market drivers, sustaining momentum in mid-to-upper price segments throughout 2026.