If you’ve been following the real estate headlines, you may have heard that California’s housing market cooled in July. According to the California Association of Realtors’ July 2026 Home Sales and Price Report, statewide sales declined 6% from June.
But as I often remind my clients, a statewide headline tells only part of the story—and almost none of San Diego’s.
San Diego Is Telling a Different Story
While statewide sales slowed, Southern California home prices remained 2.7% higher than they were a year ago. Here in San Diego, detached-home prices climbed an even stronger 5.7%, according to the same C.A.R. report.
At the luxury level, the difference becomes even more striking.
San Diego County experienced a 23% increase in sales of homes priced at $3 million and above during the second quarter, even as sales below $1 million declined. Nationally, luxury home prices are rising approximately three times faster than the rest of the housing market.
San Diego also recently ranked third among major U.S. metropolitan areas for growth in luxury pending sales, which increased 22.5%.
And this isn’t showing up in just one report. Redfin found that sales volume in San Diego’s luxury tier increased 24% during the second quarter. The San Diego Association of Realtors also reported that pending sales of homes priced at $5 million and above were up 21.8% year over year as of May.
Clearly, there is still significant money moving through San Diego’s luxury real estate market.
Our Coastal Communities Make It Even Clearer
Take a closer look at some of San Diego’s most desirable coastal communities, and the story becomes difficult to ignore.
In Del Mar, the second-quarter median sales price reached $4.48 million, with twice as many homes selling above $5 million compared with the previous year.
Rancho Santa Fe’s median price climbed to $4.53 million while available inventory tightened.
In La Jolla, the median price rose 11%, with more homes closing above the $3 million mark.
These numbers don’t suggest a market that has stopped moving. They show that real estate is becoming increasingly segmented. Activity can vary dramatically depending on the neighborhood, price point, property condition, and even the street.
What Does This Mean for Buyers?
Today’s luxury market may offer buyers more time to evaluate a property, complete their due diligence, and negotiate than they had during the frenzy of recent years.
However, more time does not necessarily mean unlimited time.
The best properties in San Diego’s most desirable neighborhoods—especially homes that are beautifully presented and appropriately priced—can still move quickly. Buyers who are financially prepared and clear about what they want will be in the strongest position when the right opportunity appears.
What Does This Mean for Sellers?
A cooler statewide headline does not automatically mean your home’s value is cooling.
There are active, sophisticated buyers in San Diego right now, particularly at the luxury level. But those buyers are paying close attention to value. Pricing, presentation, condition, marketing, and negotiation strategy all matter.
This is not a market in which sellers should simply choose a number based on what a neighbor received two years ago. It’s a market that rewards thoughtful preparation and a pricing strategy based on what buyers are doing today.
Real Estate Is Local—Sometimes Down to the Street
The number that matters most isn’t a statewide average or a dramatic national headline. It’s what is happening in your neighborhood, within your price range, and among the homes that truly compete with yours.
That’s where the real story lives—and that’s always a conversation worth having.
If you’re curious about what today’s market means for your home or your next purchase, reach out anytime. I’m always happy to help you read between the headlines.
😉 Keri
