San Diego Home Prices Fall 4th Month: What It Means for Sellers
TL;DR
- San Diego's median home price fell to $975,000 in September 2025, the fourth consecutive monthly decline
- Despite falling prices, homes still cost 8.7 times median household income, requiring families to dedicate 51% of monthly income to mortgages
- Only 29% of homes sold above asking price, down from 71% in April 2022
- Homes now sit on market for 41 days average, up from 28 days in 2024
- 34.4% of listings experienced price reductions in October 2025
San Diego County's housing market is experiencing a significant shift. After years of relentless price increases, the median home price has declined for four consecutive months, dropping to $975,000 in September 2025. This represents a 0.85% year-over-year decrease, placing San Diego 15th out of 19 major U.S. metros tracked by the S&P Case-Shiller Index.
Yet despite this cooling, San Diego remains one of America's least affordable housing markets. The reality facing homeowners today is complex: prices are falling, but affordability remains out of reach for most residents. Understanding these market dynamics is crucial whether you're considering selling your home in the traditional market or exploring faster alternatives like cash sales.
The Numbers Behind San Diego's Housing Decline
The statistics paint a sobering picture of San Diego's current real estate landscape. According to data from the San Diego Union-Tribune, several key metrics reveal the extent of the market slowdown:
- Median home price: $975,000 (September 2025), down from $982,315 the previous year
- Year-over-year decline: 0.85%, one of the weakest performances among major U.S. metros
- Sales volume: Just 20,504 sales through September, on track for one of the slowest years on record
- Days on market: Homes now sit for an average of 41 days, up from 28 days in 2024
- Above-asking sales: Only 29% of homes sell above asking price, a dramatic drop from 71% in April 2022
Lisa Sturtevant, chief economist at Bright MLS, summarized the situation succinctly: "Affordability is the biggest constraint in the market right now."
The market has shifted from the frenzy of 2021-2022 to a more balanced environment where buyers have negotiating power and sellers must adjust expectations. Recent Redfin data shows that 34.4% of San Diego homes experienced price reductions in October 2025, up 3.3 percentage points from the previous year.
Why Affordability Remains a Crisis Despite Falling Prices
Here's the paradox: home prices are declining, yet San Diego housing remains historically unaffordable. The median home price of $985,092 (as of October 2025) sits at 8.7 times the median household income of $112,933. This ratio places San Diego among the nation's least affordable markets.
To put this in perspective:
| Metric | San Diego | National Average |
|---|---|---|
| Price-to-Income Ratio | 8.7x | 5.0x |
| Monthly Income to Mortgage | 51% | 32% |
| Households Able to Afford Median Home | 13% | 36% |
| Median Home Price | $930,000 | $442,000 |
According to analysis from Intercontinental Exchange, the average San Diego County household must dedicate 51% of monthly income to principal and interest payments on a median-priced home. This ranks San Diego as the third-worst metro area nationally for housing affordability, behind only Los Angeles/Orange County (62%) and San Jose (53%).
Economist Ray Major identified insufficient wage growth as a primary culprit, noting that San Diego lacks major corporate headquarters that typically drive higher-paying jobs. The result has been "a hollowing out of the middle class" that depends on home equity building for wealth accumulation.
How Different San Diego Neighborhoods Are Affected
The market slowdown hasn't impacted all San Diego neighborhoods equally. Coastal communities and luxury enclaves continue to command premium prices, while inland and mid-tier markets face greater pressure.
La Jolla
Remains one of the county's most resilient markets, with median home prices around $2.4 to $2.5 million in September 2025, representing a 5-6% increase year-over-year. Oceanfront properties command $5-20 million, while inland La Jolla homes typically start at $1.8 million.
Pacific Beach
Saw its median home price reach approximately $1.3 million, up 4.5% from the previous year. The beach lifestyle and walkable community continue to attract buyers willing to pay premium prices for coastal access.
North Park
Representing San Diego's urban core, has seen increasing interest from millennials and young professionals. While specific 2025 pricing data varies, the neighborhood remains popular for its walkability, dining scene, and relatively more accessible price points compared to coastal areas.
Mission Beach, Ocean Beach, and Mission Valley
Have experienced more pronounced cooling, with longer days on market and increased price reductions. These areas represent opportunities for buyers but challenges for sellers who must price competitively.
Lisa Sturtevant noted that the current market is "K-shaped," where luxury properties continue performing well while mainstream inventory struggles to find buyers at elevated price points.
What This Market Shift Means for San Diego Homeowners
If you're a homeowner in San Diego County, the current market conditions create both challenges and opportunities depending on your situation.
For sellers in the traditional market:
- Expect longer marketing times (41 days average vs. 28 days last year)
- Price competitively from the start, as 34% of listings now require price reductions
- Understand that only 27.8% of homes sell above asking price
- Be prepared for buyers to negotiate more aggressively on price and repairs
- Factor in carrying costs during extended listing periods
For sellers needing to move quickly:
Life doesn't always wait for ideal market conditions. Many San Diego homeowners face circumstances requiring fast home sales:
- Job relocation: San Diego's military presence and tech sector create frequent transfers
- Financial distress: Rising costs of living strain household budgets
- Inheritance: Managing properties from estates can be overwhelming
- Divorce: Jointly owned homes need quick, fair resolution
- Property condition: Deferred maintenance makes traditional sales difficult
- Foreclosure avoidance: Time-sensitive situations requiring immediate action
In these scenarios, working with a cash home buyer in San Diego can provide a faster, more certain path to sale.
The Benefits of Selling to a Cash Buyer in Today's Market
When market conditions are uncertain and time is of the essence, cash home buyers offer advantages that traditional sales cannot match.
Speed of Transaction
Cash buyers like San Diego Fast Cash Home Buyer can provide offers within 24-48 hours and close in as little as 7-14 days. Compare this to the typical 60-90 day traditional sale process, which can extend even longer in today's slower market.
Sell As-Is Condition
No need to invest in repairs, staging, or updates. Cash buyers purchase properties in any condition, saving you thousands in preparation costs and weeks of work.
No Commissions or Fees
Avoid the typical 5-6% real estate commission plus closing costs. On a $975,000 home, this could save $50,000-60,000 in selling expenses.
Certainty of Close
Cash offers don't depend on buyer financing, appraisals, or contingencies that frequently derail traditional sales. In today's market with mortgage rates around 6.30%, financing failures have become more common.
Avoiding Foreclosure
If you're facing foreclosure, a quick cash sale can stop the process before it damages your credit. Cash buyers can often close before auction dates, protecting your financial future.
Divorce Situations
Cash sales provide a neutral, fast solution to divide assets and allow both parties to move forward without prolonged property disputes.
San Diego Fast Cash Home Buyer serves all major neighborhoods including Pacific Beach, La Jolla, Mission Beach, Ocean Beach, North Park, Hillcrest, Mission Valley, Chula Vista, and throughout San Diego County. Contact us at +1 (619) 555-0100 or visit www.sd-cash-buyer.com to discuss your specific situation.
Market Outlook: What Experts Predict for 2026
While no one can predict the future with certainty, several factors will shape San Diego's housing market over the next 12-18 months.
Mortgage Rates
Currently hovering around 6.30% for 30-year fixed mortgages, rates remain elevated compared to the 3-4% environment of 2020-2021. Nicholas Godec of S&P Dow Jones Indices noted that "mortgage rates stubbornly elevated" continue constraining buyer demand.
Inventory Levels
Housing inventory has increased 19.2% for detached homes and 45.2% for attached homes year-over-year. However, supply remains lean compared to 2018-2019 norms, with months of supply around 2.0-2.3 countywide.
Price Trajectory
Most analysts expect modest declines or flat prices through early 2026, followed by potential stabilization if mortgage rates decrease. The Case-Shiller Index showing San Diego at -0.85% year-over-year suggests the market is finding a new equilibrium.
Wage Growth
Unless San Diego experiences significant wage growth, particularly in mid-tier jobs, affordability will remain constrained. The current 8.7x price-to-income ratio is unsustainable long-term without income increases or price corrections.
Regional Factors
San Diego's desirable climate, limited developable land, and strong employment in biotech and defense provide underlying demand support, but these factors alone cannot overcome affordability constraints.
For homeowners considering selling, the message is clear: today's market requires realistic pricing, patience in traditional sales, or consideration of alternative sale methods if speed and certainty are priorities.
Frequently Asked Questions
How long does it take to sell a house in San Diego right now?
Currently, homes in San Diego sit on the market for an average of 41 days, up from 28 days in 2024. However, this varies significantly by neighborhood, price point, and condition. Coastal properties in La Jolla or Pacific Beach may sell faster, while inland areas experience longer marketing times. Cash buyers can close in 7-14 days regardless of market conditions.
Should I wait for the San Diego market to recover before selling?
This depends on your individual circumstances. If you can afford to wait and don't need immediate proceeds, market conditions may improve in 12-18 months. However, if you're facing job relocation, financial pressure, divorce, or foreclosure, waiting isn't practical. Additionally, there's no guarantee prices will recover quickly given current affordability constraints. Consulting with local real estate professionals or cash buyers can help you make an informed decision.
What is the median home price in San Diego in 2025?
As of September 2025, the median home price for single-family homes in San Diego County is $975,000. However, this varies widely by neighborhood: La Jolla averages $2.4-2.5 million, Pacific Beach around $1.3 million, while more affordable areas may have median prices in the $600,000-800,000 range. Recent data from Redfin shows the median at $930,000 in October, reflecting continued price softness.
How do I sell my house fast in San Diego without a realtor?
The fastest way to sell without a realtor is working directly with a cash home buyer like San Diego Fast Cash Home Buyer. The process typically involves: (1) contacting the buyer and providing basic property information, (2) receiving a no-obligation cash offer within 24-48 hours, (3) choosing your closing date (as soon as 7-14 days), and (4) completing the sale with no repairs, commissions, or fees. Call +1 (619) 555-0100 or visit www.sd-cash-buyer.com to start the process.
Can I sell my San Diego home if I'm behind on mortgage payments?
Yes. If you're behind on payments and facing potential foreclosure, selling to a cash buyer can stop the foreclosure process and protect your credit. Cash buyers can close quickly, often before auction dates, allowing you to pay off the mortgage and potentially walk away with remaining equity. Time is critical in these situations, so contact a cash buyer immediately at +1 (619) 555-0100 to discuss your options.
What neighborhoods in San Diego are experiencing the biggest price drops?
While comprehensive neighborhood-level decline data isn't publicly available, industry reports suggest inland and mid-tier neighborhoods are experiencing greater price pressure than coastal luxury markets. Areas like Mission Valley, Chula Vista, and eastern San Diego County typically see larger price adjustments during market corrections. Conversely, La Jolla and Pacific Beach have remained relatively resilient with some neighborhoods still showing price appreciation.
Is now a good time to sell a house in San Diego?
It depends on your motivation and timeline. If you need to sell due to life circumstances (relocation, divorce, financial hardship, inheritance), then now is the right time regardless of market conditions. If you're simply looking to maximize profit, current conditions may require patience in traditional sales or accepting that you won't see the peak prices of 2022. Cash buyers offer a middle path: quick sales at fair market prices without the costs and delays of traditional listings.
Ready to Sell Your San Diego Home?
San Diego's housing market is in transition, but your ability to move forward doesn't have to wait. Whether you're facing relocation, financial pressure, divorce, foreclosure, or simply need to sell quickly in today's uncertain market, we provide transparent cash offers and flexible timelines that work with your schedule.
Free consultation • No obligation • Close in as little as 7-14 days
Sources & References
- San Diego Union-Tribune. "Affordability is the biggest constraint: San Diego home prices fall for 4th month." December 1, 2025. View source
- San Diego Union-Tribune. "Here is how much San Diego home prices are outpacing wages." November 28, 2025. View source
- Redfin. "San Diego Housing Market Data." Accessed December 3, 2025. View source
- Redfin. "La Jolla Neighborhood Housing Market Data." Accessed December 3, 2025. View source