San Diego Home Prices Drop 4 Months Straight: Cash Buyers
TL;DR
- San Diego home prices fell 0.85% year-over-year in September 2025—the fourth consecutive monthly decline
- Only 29% of homes now sell above asking price, down from 71% in April 2022
- Median single-family home price: $975,000 with affordability at crisis levels (8.7x median income)
- Cash buyers provide certainty and speed for sellers in an uncertain market with 7-14 day closings
San Diego's once-unstoppable housing market has hit a wall. After years of record-breaking price increases, the market experienced its fourth consecutive month of price declines in September 2025, with home values falling 0.85% year-over-year according to the S&P CoreLogic Case-Shiller Index.[1]
This marks a significant shift from the frenzy of 2021-2022, when bidding wars were common and 71% of homes sold above asking price. Today, that figure has plummeted to just 29%—a stark reminder that San Diego's housing market has fundamentally changed.[1]
For homeowners facing financial pressure, inheritance complications, divorce, relocation, or property issues, this shifting market creates new challenges. Traditional listings now take an average of 82 days to close,[3] and there's no guarantee your home will sell at your target price. This is where cash buyers offer a compelling alternative: certainty, speed, and simplicity when you need it most.
Why San Diego Home Prices Are Falling
Affordability Has Reached Crisis Levels
Lisa Sturtevant, chief economist at Bright MLS, put it bluntly: "Affordability is the biggest constraint in the market right now."[1]
The numbers tell a sobering story. San Diego's median home price of $975,000 in September 2025 represents 8.7 times the median household income of $112,933.[2] For context, the national average sits at just 5 times income—meaning San Diego homebuyers face nearly double the affordability burden of typical American cities.
To afford San Diego's median home using traditional lending guidelines (28-30% of gross income for housing), a household would need annual income of approximately $242,000-260,000.[2] This income requirement has nearly doubled since 2020, when approximately $124,000 was sufficient.
The Market Has Shifted to Buyers
Nicholas Godec of S&P Dow Jones Indices observed that "the market appears to be settling into a new equilibrium of minimal price growth, or outright decline."[1]
| Market Indicator | Current (2025) | Peak (2022) |
|---|---|---|
| Homes selling above asking | 29% | 71% (April 2022) |
| Median home price | $975,000 | Higher previous peaks |
| Year-over-year price change | -0.85% | Double-digit increases |
| Total sales (through Sept) | 20,504 | Significantly higher |
| Days on market | 45-75 days average | 15-30 days |
What This Means for San Diego Homeowners
Traditional Listings Take Longer With No Guarantees
In 2025's market, selling through traditional channels means:
- Average 82 days from listing to closing[3]
- No certainty of sale even after months on market
- Pressure to reduce price as days accumulate
- Continued mortgage, tax, insurance, and maintenance costs while waiting
- Potential for buyer financing to fall through (common in tight credit markets)
- 5-6% real estate commission fees even on reduced sale prices
Motivated Sellers Need Different Solutions
When you need to sell quickly or with certainty, the traditional listing approach may not align with your situation:
- Inheritance situations: Siblings may disagree on property disposition, property taxes and maintenance eat into the estate, or you simply don't want to manage a property from a distance.
- Financial pressure: Falling behind on mortgage payments, facing foreclosure proceedings, or unable to afford necessary repairs puts you on a tight timeline.
- Life transitions: Divorce requires quick asset liquidation, job relocation won't wait for a buyer, or health issues demand immediate attention.
- Property conditions: Homes needing significant repairs won't attract traditional buyers in a buyer's market, and you may lack funds or time to make improvements.
In these scenarios, a cash buyer who can close in 7-14 days with no inspection contingencies or repair requirements offers a practical solution.[3]
How Cash Buyers Help in a Falling Market
Speed and Certainty
Cash transactions typically close in 7-21 days, providing immediate relief from financial obligations and no risk of buyer financing falling through.
As-Is Purchase
No costly repairs, staging, or deep-cleaning required. Cash buyers purchase homes in current condition, eliminating all preparation work.
Lower Closing Costs
No real estate commission, reduced closing costs, and minimal carrying costs. More net proceeds than traditional sales in many cases.
Complex Situations
Perfect for inherited properties, pre-foreclosure, divorce, or tenant-occupied homes.
Understanding the True Cost: Cash vs. Traditional
Example: $975,000 Home (San Diego Median Price)
Traditional Sale
- List price: $975,000
- Negotiated price (2.6% reduction): $950,000
- Real estate commission (5.5%): -$52,250
- Closing costs (2%): -$19,000
- Repairs/staging: -$15,000
- Carrying costs (82 days): -$8,200
- Net proceeds: $855,550
- Timeline: 82 days
Cash Sale
- Cash offer (80% of ARV): $780,000
- Real estate commission: $0
- Closing costs (buyer covers): $0
- Repairs: $0
- Carrying costs (14 days): -$1,400
- Net proceeds: $778,600
- Timeline: 14 days
Difference in net proceeds: $76,950 (about 9% of traditional sale price)
What you gain: 68 days saved, certainty of closing, no repair obligations, no showing disruptions, known closing date for planning
What to Look for in a Cash Buyer
Red Flags to Avoid
- ✗ Pressure tactics or demands to sign immediately
- ✗ Requests for upfront fees (legitimate buyers don't charge sellers)
- ✗ Dramatically lowballing then raising price later (bait-and-switch)
- ✗ Vague company information or no physical address
- ✗ No proof of funds or ability to close
Green Flags of Reputable Buyers
- ✓ Transparent explanations of valuation process
- ✓ Provide proof of funds or demonstrated closing capability
- ✓ Verifiable local presence and track record
- ✓ Clear explanation of all costs and fees (or confirm there are none)
- ✓ Give you time to review and consult advisors
Common Questions About Selling in San Diego's Changing Market
How long will San Diego home prices keep falling?
Based on current trends and economist forecasts, San Diego prices are "settling into a new equilibrium of minimal price growth, or outright decline" according to S&P Dow Jones Indices.[1] Most analysts expect flat to modestly declining prices through mid-2026 due to affordability constraints limiting the buyer pool. However, San Diego's long-term desirability and limited supply suggest prices are unlikely to crash—just moderate from recent highs.
Should I wait to sell or sell now in this market?
This depends entirely on your situation. If you can afford to wait and aren't facing time pressure, you might monitor the market for 6-12 months. However, if you're facing financial stress, inheritance complications, divorce, relocation, or property issues, waiting rarely improves your position. Carrying costs (mortgage, insurance, taxes, maintenance) of $8,000-12,000 monthly can quickly erode any potential price recovery. Additionally, if prices continue falling, waiting could mean selling for even less later while paying carrying costs in the meantime.
How do I know if a cash offer is fair?
A fair cash offer typically ranges from 70-85% of your home's after-repair value (ARV), depending on condition, location, and needed repairs. To evaluate an offer: (1) Get your home professionally appraised or use recent comparable sales; (2) Subtract estimated repair costs; (3) Subtract traditional sale costs (commission, closing costs, carrying costs); (4) Compare to the net proceeds of the cash offer. Many sellers are surprised to find the net proceeds gap is much smaller than the initial price difference suggests. Always get multiple offers if possible and don't hesitate to ask the buyer to explain their valuation methodology.
What's the difference between a cash buyer and an iBuyer?
iBuyers are tech-enabled companies that make instant offers but often charge significant service fees (5-7%), may have geographic restrictions, and typically focus on move-in ready homes in certain price ranges. Traditional cash buyers like San Diego Fast Cash Home Buyer are often local investors or companies that: purchase homes in any condition, have more flexibility on property types and situations, typically charge no seller fees, and can accommodate complex situations like inherited properties, pre-foreclosure, or tenant-occupied homes. For San Diego sellers with properties needing repairs or facing complicated circumstances, local cash buyers often provide better terms and more personalized service.
Can I sell my house fast if it needs major repairs?
Yes—this is actually where cash buyers provide the most value. In today's buyer's market, traditional buyers have high expectations and often walk away from properties needing significant work. Cash buyers purchase homes as-is, meaning you can sell with: foundation issues, roof damage, outdated electrical or plumbing, mold or water damage, fire damage, or complete renovation needs. You won't need to make any repairs, and the buyer will account for repair costs in their offer. This is particularly valuable for inherited properties that have been neglected or for sellers who lack the funds or time to make improvements.
Need to Sell Your San Diego Home Fast?
San Diego's housing market has fundamentally shifted. If you're facing time pressure, property challenges, or life circumstances that demand quick resolution, we provide a practical solution: certainty instead of uncertainty, 7-14 days instead of 82, and no-obligation cash offers with transparent terms.
No obligation • No fees • 7-14 day closings • Serving all San Diego County
Citations
- [1] San Diego Union-Tribune: 'Affordability is the biggest constraint': San Diego home prices fall for 4th month - Accessed December 12, 2025
- [2] San Diego Union-Tribune: Here is how much San Diego home prices are outpacing wages - Accessed December 12, 2025
- [3] List With Clever: Average Time to Sell a House in San Diego: 2025 Data - Accessed December 12, 2025
- [4] Norada Real Estate: San Diego Housing Market: Trends and Forecast 2025-2026 - Accessed December 12, 2025
- [5] Luxury SoCal Realty: San Diego Housing Market (September 2025 Statistics & Forecast) - Accessed December 12, 2025