Q3 2026 MARKET UPDATE

Buyers Have More Leverage Than They’ve Had in Years

Here’s how smart buyers are using it.

We’ve spent roughly four years working through one of the most challenging stretches for the San Diego real estate market in recent memory: rapidly rising mortgage rates, affordability pressure, slower sales, and a lot of buyers sitting on the sidelines waiting for a clearer signal.

Nobody can perfectly time the bottom of a market. But I believe we may be getting close to the bottom of this cycle, and that right now could prove to be one of the better buying opportunities we’ve seen in years.

Most buyers haven’t noticed this yet. The ones who have are negotiating on price, seller credits, repairs, and even mortgage rate buydowns. These are terms that simply weren’t on the table when San Diego homes were drawing multiple offers within days of listing. Today, a well-prepared buyer can often shape the deal instead of just chasing it.

Could San Diego home prices still move lower? Absolutely. But by the time everyone agrees the market has bottomed, some of the best opportunities may already be behind us. The buyers who did well in past cycles weren’t the ones who timed the exact bottom. They were the ones who bought quality properties while they had leverage, and then held on.

Long term, I remain extremely bullish on San Diego real estate, especially in desirable, supply-constrained coastal neighborhoods including La Jolla real estate.

Here’s a bigger-picture thought I keep coming back to. As AI, robotics, and automation make more goods and services abundant and less expensive to produce, I believe scarce, tangible assets could become even more important. AI can create virtually unlimited digital content, but it can’t create more coastline.

That scarcity is one of the fundamental reasons I continue to believe in owning quality real estate for the long term. Whether it’s oceanfront La Jolla real estate, a family home in a great school district, or an investment property near the coast, the land underneath it isn’t getting any less scarce.

If you’ve been sitting on the sidelines wondering whether now is the right time to buy, I believe this is a market worth paying close attention to.

As a San Diego & La Jolla real estate agent, I talk with buyers and sellers across San Diego about exactly these questions every day. If you want to know what I’m seeing in San Diego and La Jolla homes right now, or want me to run the numbers on buying, selling, or financing a property, send me a message. I’m always happy to be a resource.