One of the most significant factors is population growth. At the time of this writing, the population of SD is over 3.3 million, which is a .73% increase from the previous year. Combine this influx with limited real estate inventory, and you’re dealing with a big competitive market that is constantly impacting San Diego real estate.  Other factors, such as increased interest rates, economic conditions, real estate taxes, zoning regulations, etc., can also influence the market.