Giarc Real Estate Investments,INC

Giarc Real Estate Investments,INC Giarc Investments is a trusted and transparent investment company. We offer solutions and a plan of action property owners may not have thought about before.

We are here to help. OUR integrity and YOUR best interest are foremost with us.

12/02/2025

Q1 2026 San Diego Real Estate Forecast: Low Inventory, Rate Pressure, and What Smart Buyers & Sellers Should Do Now

As we enter Q1, San Diego’s housing market continues to operate in a supply-constrained environment. Inventory remains significantly below historical norms, driven largely by homeowners who are holding tight to low mortgage rates secured over the last several years. This “rate lock-in” continues to restrict new listings, while population inflow and strong job sectors maintain demand. Even with seasonal upticks in January and February, buyers should expect limited options and faster-moving properties—especially in well-priced entry and mid-tier ranges.

Interest rates remain a defining force as we open the quarter. While many hoped for significant drops, rate movement has been modest, leaving mortgage costs elevated compared to pre-2022 levels. This has reshaped affordability but hasn’t meaningfully eased prices due to persistent low inventory. Inflation, although cooling, still impacts construction costs, rental rates, and consumer confidence, creating a cautious but active marketplace. Buyers entering Q1 should prepare for continued rate volatility, and sellers should understand how borrowing costs influence buyer behavior.

Despite these economic challenges, San Diego real estate remains fundamentally resilient. Demand continues to be supported by limited land availability, a high-earning workforce, and ongoing migration from other states. These factors help stabilize property values even when national trends fluctuate. As a result, well-positioned buyers can still secure good opportunities, particularly with motivated sellers who want to capitalize on early-year buyer activity. For sellers, low competition and steady demand can translate into strong results, provided pricing aligns with today’s rate-sensitive environment.

The outlook for Q1 suggests steady activity, tight supply, and a market where both buyers and sellers can win with the right strategy. Those preparing to make a move should focus on smart timing, strong pre-approval, and a realistic understanding of the economic landscape. In a housing market shaped by scarce inventory and rate uncertainty, informed decisions—paired with expert guidance—are the key to succeeding in San Diego real estate as 2026 gets underway.

Send a message to learn more

11/21/2025

WHY Housing Inventory is Still Tight In San Diego-And what it Means for Buyers, Sellers, and Investors... By Craig at Giarc Real Estate Investments, Inc.

San Diego continues to face one of the tightest housing inventories in California, and the pressure isn't easing as we near closing out Q4. A shortage of resources, mainly building supplies, limited new construction, and long term demographic trends has created a market in San Diego which consistently outpaces availability. Though interest rates have come down slightly, it hasn't been enough to make listings hit the market. This historically low inventory situation has kept competition high and prices to follow.

One of the biggest drivers effecting the housing shortage is the "Lock-in- Effect. In 2019 thru 2022, potential buyers were able to obtain interest rates in the 4%, 3%, 2.5% range. Those now homeowners are choosing to stay put and keep their low interest mortgages, rather than sell and finance a new home at a 6-7% interest rate. This action causes a dramatic effect on housing inventory. Another factor is the building pipeline is constrained due to land shortages, slow permitting, and rising cost in construction materials, thus adding to the cost of construction itself.
As a result:
* Fewer homeowners are willing to give up low rate mortgages.
* New construction isn't keeping pace with population growth.
* Investors and first time homebuyers compete for the same pool of homes.
* Properties that do hit the market receive strong attention, though not like a few years ago, when one property was getting multiple offers.

Despite interest rates remaining high and economic uncertainty, buyer demand in San Diego continues to be fueled by a strong job sector and certain lifestyle desired. This is enough to keep home prices stable and prevent inventory from increasing back to normal levels. These factors have also shifted the way the home buying process is conducted. The new norm is, a home buyer must be approved for a home loan before they begin their search ( not pre approved, but approved). This is good as cash in your hand, because your purchase money is sitting there waiting for you to find a place to call home. Once you find a home, you must act quickly due to low inventory and competition demand, all while being realistic of the price you must pay. As for sellers, they still benefit from less competition of homes on the market and a pool of motivated sellers who still need housing.

The future forecast, though inventory levels are beginning to increase somewhat, are not expected to increase dramatically for some time; and prices will hold where they are, or see an increase 2-4% of yearly appreciation. No matter if you are a seller, buyer, or investor, there are opportunities to to be had in San Diego. Having the right representation and a mentor in real estate is a great start.

Disclaimer: This article is for educational and informational purposes only - a candidate entering the real estate market for any reason should always do their own Due Diligence.

Send a message to learn more

Address

1741 Eastlake Parkway Suite 102
Chula Vista, CA
91915

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm
Saturday 9am - 5pm
Sunday 9am - 1pm

Website

Alerts

Be the first to know and let us send you an email when Giarc Real Estate Investments,INC posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Giarc Real Estate Investments,INC:

Shortcuts

Share

Category