For the past few years, many San Diego homeowners have felt a bit like they were living in a "golden cage." You love your home, but perhaps you’ve outgrown it, your home office is now a nursery, or maybe you’re ready to trade the suburban lawn for a coastal condo. Yet, the prospect of trading a 3% mortgage rate for something much higher felt like a financial non-starter.

Welcome to The Lock-In Pivot. As we move through the first quarter of 2026, the psychological and economic barriers that kept the market frozen are finally thawing. With the 30-year fixed mortgage rate recently touching the 5.99% mark for the first time in years, the math is finally beginning to make sense for the "step-up" buyer.

If you’ve been waiting for a sign to list your home and find your next San Diego sanctuary, this is it.

1. The Magic of the 5.9% Threshold

In real estate, numbers aren't just math; they are emotions. For two years, the "7s" and "high 6s" created a massive standoff. Sellers didn't want to sell, and buyers couldn't afford to buy.

According to the latest 2026 mortgage rate forecast from Fannie Mae, rates are expected to stabilize around 5.9% by year-end. This "sub-6" territory is a game-changer for the San Diego housing market in 2026. It represents a significant increase in purchasing power, meaning that a $1.2M home in Carlsbad or Poway suddenly feels much more attainable than it did twelve months ago.

2. Inventory is Peeking Out from the Shadows

San Diego has long suffered from a chronic supply shortage. However, January 2026 data shows a refreshing trend: New listings are up approximately 11% compared to this time last year.

As more homeowners realize that "waiting for 3% again" is a losing strategy, they are choosing to prioritize their lifestyle needs over their interest rates. This is great news for you as a seller. While inventory is rising, it is still well below "normal" levels, meaning you can still command a premium price for a well-maintained, turnkey property.

Expert Tip: If you are planning to sell, your timing is critical. Our local San Diego moving experts suggest scheduling your move for the "Spring Surge" (late March to May) to capitalize on the highest volume of active buyers.

3. The "Step-Up" Strategy: Upgrading in America’s Finest City

For the "step-up" buyer, those moving from an entry-level condo to a detached single-family home, the 2026 market offers a unique window.

• Detached Home Resilience: Single-family homes in San Diego are seeing a median price of roughly $1.05M.
• Equity Rich: Most San Diego homeowners have seen their equity explode over the last five years.
• The Pivot: By using that equity as a substantial down payment, the impact of a 5.9% or 6.1% rate is significantly mitigated.

Whether you are looking for more space in Scripps Ranch or a modern lifestyle in Mission Valley, the transition has never been more logical. To make the jump easier, consider our full-service packing options so you can spend your weekends touring open houses instead of taping boxes.

4. Why Professional Logistics Matter More in 2026

In a stabilizing market, timing is everything. A "contingent" sale (where you buy and sell simultaneously) requires surgical precision. You need a moving company that understands the nuances of San Diego’s diverse neighborhoods, from the tight streets of North Park to the gated communities of Rancho Santa Fe.

At We Like to Move It, we don’t just move boxes; we move lives. We offer:

• Coordinated Timelines: We work with your closing dates to ensure you aren't stuck between homes.
• Valuation Protection: Your furniture is an investment. We treat it as such.
• Local Savvy: We know the parking permit requirements for every zip code in the county.

FAQ: Navigating the 2026 San Diego Market

Is the San Diego housing market going to crash in 2026?

Most economists, including those at the California Association of Realtors, predict a "normalization" rather than a crash. With supply still tight and demand high, home values are expected to remain stable or see modest growth.

Should I sell my home before I buy a new one?

In 2026, many sellers are finding success with "rent-back" agreements, allowing them to stay in their sold home for 30–60 days while they close on their new property. This reduces the stress of a double-move.

How do I find a reliable moving company in San Diego?

Look for companies with high local ratings and transparent pricing. You can get a free, no-obligation quote right here to start your planning.