San Diego Housing Prices are Down for 2025!
If you’re on the fence about buying a home in San Diego, you’re not alone. Many buyers are waiting for mortgage rates to drop or for prices to come down. But here’s the truth: the market is already shifting, and this could be your window of opportunity before competition heats up again.
Let’s break down what’s happening—both nationally and here in San Diego—and why buyers willing to act now may benefit the most.
National Housing Trends: Slower Sales, More Inventory
According to the National Association of Realtors, home sales in June fell 2.7% month over month and remain stuck at cyclical lows due to high mortgage rates.
- Inventory is up 15.9% year over year, which means buyers have more options and less competition.
- Houses are sitting longer, with the average home taking 27 days to sell, compared to 22 days last year.
- Sellers are receiving fewer offers—2.4 on average, down from 2.9 a year ago.
Even though the national median home price hit a record $435,300, the slowdown in sales and longer marketing times show that buyers have more negotiating power than they’ve had in years.
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San Diego Housing Market: Prices Trending Lower
Locally, the San Diego market is showing signs of cooling:
- Active inventory is up to 7,118 homes, a 1.7% weekly increase and significantly higher than early summer levels.
- Pending sales jumped 14.6% last week, but much of that is due to sellers adjusting prices to attract buyers.
- The weekly median combined price is holding at $890,000 now, but market analysts predict it will trend lower through the rest of 2025.
Market Predictions for San Diego
- 3-Month Outlook (Sept 2025): Prices will continue trending down.
- 6-Month Outlook (Dec 2025): Prices are expected to be 4-6% lower than the May 2025 peak, with homes sitting ~50 days on market.
- 12-Month Outlook (June 2026): Prices could be 5-7% lower than today if mortgage rates stay in the 6.5–7.5% range.
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Why This Could Be the Perfect Window for Buyers
✅ More Choices, Less Competition
Inventory is rising, homes are taking longer to sell, and buyers have room to negotiate—something we haven’t seen in years.
✅ Prices Are Already Softening
San Diego prices are expected to fall further through the end of 2025, giving you the opportunity to buy below peak market values.
✅ Rates Will Eventually Drop
If rates drop closer to 6% in 2026, buyer demand will surge again—and so will prices. Acting now could mean locking in a home before competition returns.
✅ You Can Refinance Later
Buyers who purchase now can refinance if rates drop, rather than waiting and risking higher prices when the market rebounds.
Bottom Line: Should You Wait or Buy Now?
The San Diego housing market is finally shifting in favor of buyers. Prices are softening, inventory is climbing, and homes are staying on the market longer. While no one can time the market perfectly, waiting until prices rebound or rates drop could mean paying more for the same home later.
If you’re financially ready, this could be the window you’ve been waiting for.
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Let’s talk about your goals and find you the right home while the market is still in your favor.
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With nearly two decades of experience helping buyers and sellers throughout San Diego, Wesley Guest understands that real estate decisions are rarely just about numbers — they’re about timing, lifestyle, and long-term peace of mind. From first-time condo buyers to seasoned sellers and relocations, his approach is focused on clarity, strategy, and protecting your interests. If you’d like help navigating your next move in San Diego, don’t hesitate to reach out and schedule a conversation below.
