San Diego Market Shifts: Homes Take 33% Longer to Sell

Introduction

San Diego's red-hot seller's market is cooling—and the numbers tell a clear story. After years of bidding wars and homes selling in days, properties across San Diego County are now sitting on the market 33% longer than they did just one year ago. According to recent data from Redfin and local market reports, the average home now takes 40-41 days to sell compared to 30 days in 2024.

"The uptick in days on market is a sign that San Diego's housing market is now more buyer-friendly," says Daryl Fairweather, Redfin's Chief Economist. "Buyers probably have a bit more negotiating power and prices will likely continue to moderate."

For San Diego homeowners considering a sale, this shift raises important questions: What does a buyer's market mean for your timeline? How can you avoid extended listing periods? And when does a guaranteed cash offer make more sense than waiting for the perfect traditional buyer?

What the Data Shows: San Diego's Market Transformation

Days on Market Nearly Double in Some Areas

The clearest indicator of market shift is time. While overall San Diego County averages show 40 days on market, the reality varies significantly by property type and location:

• Mid-tier properties: Now averaging 30-40 days on market
• Premium coastal areas (La Jolla, Pacific Beach): Still moving in under 20 days when properly priced
• Hot properties: Going pending in approximately 38 days
• Year-over-year change: +13 days (+33% increase)

This stands in stark contrast to the pandemic-era market when homes routinely sold within days of listing, often with multiple offers sight unseen.

Price Corrections Underway

The extended days on market coincide with notable price adjustments:

• Median sale price: $885K-$930K (down 1.7-2.1% year-over-year)
• Price per square foot: $675 (down 3.6% from 2024)
• Homes selling above list: 27.9% (down 3.9 percentage points)
• Price reductions: 34% of listings now have reduced asking prices (up 2.9 points)
• Sale-to-list ratio: 98.7% (buyers getting modest discounts)

While San Diego's median home price still sits 111% higher than the national average, the trajectory shows clear moderation from peak pricing.

Inventory Increases Give Buyers Options

Supply and demand dynamics are rebalancing:

• Active listings: Up 7% year-over-year countywide
• Months of supply: Approximately 2.0-2.3 months (still below the 6-month "balanced market" threshold)
• Inventory for attached homes: Up 10% year-over-year
• Market competitiveness: Redfin Compete Score of 69/100 (moderate competition)

The increase in available homes means buyers can take their time, compare options, and negotiate—factors that directly impact how long sellers wait for offers.

Understanding Buyer's Market vs. Seller's Market

What Defines a Buyer's Market?

A buyer's market occurs when supply exceeds demand, giving purchasers leverage. Key characteristics include:

• More homes available than active buyers
• Homes sitting on market for extended periods
• Price reductions becoming common
• Buyers having time to conduct thorough inspections and due diligence
• Sellers more willing to negotiate on price and terms

San Diego is showing several of these indicators, though the market remains more balanced than fully buyer-dominated due to limited inventory compared to historical norms.

What This Means for San Diego Sellers

The shift creates new challenges for homeowners:

1. Extended carrying costs: Every additional week on market means continued mortgage payments, property taxes, insurance, and utilities
2. Uncertainty: No guarantee of when an acceptable offer will arrive
3. Negotiation pressure: Buyers increasingly requesting repairs, credits, and contingencies
4. Pricing strategy: Overpricing now results in prolonged listings and eventual reductions
5. Competition: Your home competes with 7% more listings than last year

Neighborhood-Specific Market Conditions

Premium Coastal Markets (La Jolla, Pacific Beach)

High-end coastal neighborhoods continue showing relative strength:

• La Jolla median: $2.5-2.8 million (up 5-9% annually)
• Days on market: Sub-20 days for properly priced, prepared homes
• Buyer profile: Wealthy buyers seeking luxury and coastal views
• Competition: Properties still selling above asking in many cases

Pacific Beach offers more diverse price points with two-bedroom rentals averaging $3,500/month, supported by tourism and coastal appeal. Properties here often sell above asking when positioned correctly.

Urban Core Growth Areas (North Park)

Neighborhoods like North Park are experiencing demographic shifts:

• Buyer demographic: Millennials seeking walkability and community atmosphere
• One-bedroom rentals: Averaging $2,650/month
• Development activity: New construction meeting demand for both luxury and affordable options
• Market dynamics: Rising prices due to increased millennial interest

Market-Wide Reality

Despite neighborhood variations, the overall trend is consistent: homes are taking longer to sell, giving buyers more negotiating power across all price points and locations.

The Cash Buyer Advantage in a Slower Market

Speed and Certainty When You Need It Most

While traditional sales now average 40+ days on market, cash buyers offer dramatically different timelines:

• Closing timeline: 7-14 days vs. 40+ days traditional sale
• No financing contingencies: Eliminates the risk of deals falling through
• No appraisal requirements: Price agreed upon isn't subject to bank valuation
• As-is purchases: No need for repairs, staging, or preparation

When Cash Offers Make Sense

Several scenarios make cash buyers particularly valuable in the current market:

1. Time-Sensitive Situations

• Job relocation with hard move dates
• Divorce settlements requiring quick asset division
• Avoiding foreclosure with limited time before auction
• Estate settlements and probate situations

2. Property Condition Challenges

• Homes needing significant repairs that deter traditional buyers
• Properties unlikely to pass conventional financing inspections
• Inherited homes with deferred maintenance
• Homes with title or legal complications

3. Market Uncertainty Avoidance

• Sellers unwilling to carry property through extended listing periods
• Desire to avoid multiple price reductions
• Need for guaranteed closing dates for financial planning

The Trade-Off: Price vs. Certainty

Cash offers typically range from 67.5% to 100% of market value depending on condition and situation. While this represents a discount compared to potential top-of-market traditional offers, consider the full picture:

Traditional Sale Costs:

• Real estate commissions (5-6% typical)
• Repairs and improvements requested by buyers
• Staging costs
• Continued carrying costs during 40+ day marketing period
• Risk of deals falling through after inspections
• Potential price reductions if property sits

Cash Sale Benefits:

• No commission fees
• No repair obligations
• No carrying costs beyond 7-14 days
• Guaranteed closing
• Immediate certainty for planning next steps

For many sellers, particularly those with time constraints or properties needing work, the net proceeds between options can be comparable once all factors are calculated.

Market Outlook: What's Next for San Diego?

Expert Perspectives

Redfin's analysis suggests continued moderation: "Prices will likely continue to moderate" as buyers gain negotiating power. However, San Diego's fundamental demand drivers remain strong:

• Limited buildable land constraining new supply
• Strong job market and economy
• Desirable climate and lifestyle
• Continued migration from higher-cost California markets

Foreclosure and Distress Trends

San Diego County currently has approximately 2,625 foreclosure-related listings (including pre-foreclosures and short sales). While foreclosure filings remain low by historical standards—down over 50% compared to a decade ago—the inventory exists in more affordable suburban areas including Spring Valley, Encanto, Oceanside, City Heights, Mira Mesa, and Chula Vista.

Homeowners facing financial difficulty have options beyond foreclosure, including cash buyers who can close quickly before auction dates.

Balanced Market Expectations

Most analysts describe San Diego as moving toward balance rather than a full buyer's market. With months of supply still well below the 6-month benchmark for true balance, demand remains healthy. The shift simply means sellers must be more strategic about pricing, presentation, and realistic timeline expectations.

Conclusion: Navigate the New Market with Confidence

San Diego's housing market has entered a new phase. The 33% increase in days on market, combined with rising inventory and price moderation, signals a fundamental shift from the seller-dominated environment of recent years. For homeowners, this means more strategic thinking about pricing, presentation, and realistic timeline expectations.

While traditional sales now require 40+ days of market time with no guarantee of terms, cash buyers continue offering an alternative: certainty, speed, and freedom from the uncertainty of extended listings. Whether you're facing foreclosure, dealing with an inherited property, relocating for work, or simply want to avoid months of showings and negotiations, a cash offer provides a clear path forward.

The market may be more buyer-friendly, but that doesn't mean sellers are without options. Understanding the data, knowing your neighborhood's specific dynamics, and exploring all available sale methods—including cash buyers—empowers you to make the best decision for your timeline and financial goals.