San Diego Sales Jump 8% As Listings Shrink

California's summer market is pulling in two directions at once. Borrowing costs have crept back up, with the 30-year fixed averaging near 6.7% and weekly loan demand slipping, and statewide affordability gave back the ground it gained earlier this year. Transaction volume, though, is holding up better than the headlines suggest: sales rose year over year nationally in July, and in parts of Southern California buyers are moving faster than they have in more than a year as active listings thin out. The takeaway for investors is a market that rewards local reading over statewide averages, with pricing power still intact where supply is tight.

In The News:

Redfin — San Diego County Housing Market Update: July 2026 (August 5, 2026) — San Diego County closed 2,293 sales in July, up 8% year over year and the strongest annual gain since early 2025, while active listings fell 6%. The median sale price rose 2.4% to $937,251, homes went pending in 29 days — a week faster than a year ago — and 36.1% sold above asking, up 4.3 points, running against the national cooldown.

C.A.R. — California housing affordability retreated in the second quarter after reaching a four-year high in early 2026 (August 5, 2026) — Nineteen percent of California households could afford the state's $916,750 median-priced existing single-family home in the second quarter, down from 22% in the first quarter but above the 17% of a year earlier. Buyers needed $228,400 in annual income and a $5,710 monthly payment as the effective composite mortgage rate rose to 6.54%.

Zillow — Zillow's July Market Report shows a 7% sales surge, but leading indicators point to a slower second half (August 6, 2026) — Home sales climbed 7% year over year in July, the strongest annual gain of 2026, with the typical U.S. home value at $371,757, up 1.1% from a year ago. Newly pending listings rose just 0.3% annually and fell 7.7% from June, while inventory reached 1.41 million homes, extending a 32-month streak of supply gains.

Freddie Mac — Mortgage Rates Average 6.69% (August 6, 2026) — The 30-year fixed-rate mortgage averaged 6.69%, up from 6.66% a week earlier and above the 6.63% of a year ago, while the 15-year eased to 6.01%. Chief economist Sam Khater pointed to listing prices sitting modestly below year-ago levels and for-sale inventory improving from the tight supply of recent years, a trade-off buyers are weighing against higher monthly payments.

Mortgage Bankers Association — Mortgage Applications Decrease in Latest MBA Weekly Survey (August 5, 2026) — Total mortgage application volume fell 2.9% for the week ending July 31, with the seasonally adjusted purchase index down 4% and unadjusted purchase activity 3% below the same week last year. Both purchase and refinance demand slipped as rates pushed higher, a reminder that payment-sensitive California buyers pull back quickly when financing costs move.