If you’ve been watching the housing market and thinking, “Okay… is the tide finally turning?” you’re not imagining things.
As 2026 gets underway, a few real shifts are showing up. Mortgage rates have dipped to their lowest levels in more than three years. More homes are sitting on the market instead of disappearing in a weekend. And in certain areas, sellers are starting to adjust their expectations with price cuts.
So the big question is still the same.
Is this actually a good time to buy a home?
Let’s break down what’s happening right now in plain English, and what it could mean for you if you’re thinking about buying this year.
More homes for sale means buyers finally have options again
This is one of the biggest differences compared to the last few years. According to Realtor.com’s December 2025 Housing Market Trends Report, active listings were up 12.1% compared to December 2024.
That matters, because choice changes everything.
When there are more homes available, buyers don’t feel forced to leap. You can take a breath. You can compare properties instead of grabbing the first decent one. And you’re less likely to get pulled into the emotional “we have to offer today or we’ll lose it” spiral.
Now, we still tend to see fewer new listings in the winter months. That’s normal. But the year-over-year increase is the part worth paying attention to, because it suggests the market is becoming more balanced than it was this time last year.
Price reductions are becoming more common
Here’s another clear sign of a shift. In December, the national share of homes with price reductions was 12.9%.
That doesn’t mean the market is crashing. It also doesn’t mean every seller is discounting.
It means more sellers are learning a tough lesson: buyers are pickier when payments are high, and overpriced homes don’t get rewarded the way they did in 2021. If a home is priced above what buyers are willing to pay right now, it sits. And when it sits, price cuts follow.
From a buyer perspective, this is where opportunity tends to show up. Once a seller has reduced their price, they’re often more open to negotiating further, whether that’s on price, repairs, closing costs, or timelines.
Homes are taking longer to sell, and that can work in your favor
In December, the median days on market rose to 73 days. That’s 4 days longer than the same time last year, and 9 days longer than in November.
This is one of those stats that sounds boring until you realize what it does behind the scenes.
Time changes seller behavior.
When a listing has been sitting for weeks, the seller is typically more willing to listen. They’re more receptive to concessions. They’re more likely to consider a credit, or a repair request, or a structured offer that helps the buyer’s monthly payment. And sometimes, they just want the uncertainty to end.
In a fast market, buyers are the ones bending over backwards. In a slower market, sellers do more of the bending.
Mortgage rates are lower than last year, but affordability still runs the show
Let’s talk rates, because that’s what everyone feels most.
Freddie Mac reported the highest 30-year fixed rate in 2025 was 7.04%. Lately, rates have hovered in the low 6% range, and the average 30-year fixed rate mentioned in the article is around 6.09%, with a recent low of 6.06% earlier in January.
Is that “low” compared to 2020 and 2021?
No. Not even close.
But compared to what buyers dealt with last year, it’s an improvement. And even small changes in rates can make a meaningful difference in monthly payment, which is what ultimately determines who can buy and how much they can comfortably afford.
One detail I agree with here: mortgage rates tend to follow the 10-year Treasury yield more closely than they follow whatever the Fed does in a given week. So even if the Fed doesn’t cut rates, mortgage rates can still drift downward depending on what’s happening in the broader economy and what investors expect.
So… is now a good time to buy?
Here’s my honest answer.
It can be. But only if you buy from a position of strength.
The market is giving buyers more breathing room right now. There’s more inventory. There’s more time to make decisions. There are more price cuts. And that combination usually brings negotiation power back into the conversation.
But the monthly payment still matters more than the headline.
So instead of asking, “Is now a good time in general?” the better question is, “Is now a good time for me?”
If you can afford the payment comfortably today without counting on a future refinance, and you plan to stay put long enough for the purchase to make sense, this kind of market can actually be a great window. You get options, and you get leverage.
If the payment feels tight, or you’re hoping rates will drop quickly to make it work, it might be smarter to wait and prepare. Sometimes the best move is getting your finances stronger so that when the right home shows up, you’re ready to act.
The smartest 2026 move: negotiate the financing, not just the price
A point in the article that I wish more buyers took seriously is lender shopping. A lot of people get one preapproval and assume that’s “the rate.”
But rates and fees vary, sometimes more than people expect.
Even more importantly, competition gives you bargaining power. If you have quotes from multiple lenders, you’re no longer stuck. You can compare, negotiate, and choose the offer that makes the most sense for your monthly budget.
And in a market where homes are sitting longer, buyers are also negotiating things like seller credits, rate buydowns, and special financing, especially when builders or motivated sellers want to make a deal happen.
Bottom line
2026 is starting with a different feel.
We’re not back to the frenzy. But we’re also not in a collapse. What we’re seeing is a market that’s becoming more balanced, where buyers finally have room to think again.
If you’re considering buying this year, the best next step is to look at your specific numbers. Not just home prices, but the full monthly payment and what you’d need to feel good about it.
And if you want a no-pressure read on your neighborhood, I’m happy to help you figure out what’s realistic right now, what’s sitting, and where the true negotiating leverage is. Reach out to me at 858-335-4597.
Until next week's San Diego Housing Market Mondays - have a great week! - Jade
