The Shift in San Diego's Housing Market: What Homebuyers and Sellers Need to Know
- Tristen Campanella
- May 16
- 3 min read
The San Diego housing market has undergone a noticeable shift recently, with prices dipping for the first time in years. This trend, which can be attributed to factors such as interest rate fluctuations, economic uncertainty, and changing buyer sentiments, has left many wondering what’s next for home prices in the area. Let’s dive into the current data to help you navigate the market, whether you’re looking to buy or sell.
The Latest Market Trends in San Diego
San Diego County has seen a rise in the number of homes on the market, with inventory increasing by 4%. While it’s not a huge spike, it’s enough to indicate a shift in dynamics. Alongside that increase, we’ve also noticed a rise in closed sales, signaling that homes are still selling, although not at the same pace as in previous years.
Median Sales Price Down 2.3%
Perhaps the most telling statistic right now is the decrease in the median sales price for detached single-family homes, which has dropped by 2.3%. This may not seem like a significant dip, but it marks the first time in a while that we’ve seen prices fall in the San Diego market, and it signals that sellers may need to adjust expectations.
Inventory Levels and Seller Adjustments
Inventory in San Diego has gone up by 11%, although we’re still not seeing a massive flood of listings. However, this slight increase has led to a change in how homes are priced. Home sellers are now receiving slightly less than their original asking price, with the list-price-to-sold-price ratio now sitting at 99.7%. A year ago, homes were frequently selling for more than asking, so this slight adjustment may indicate that buyers are getting a little more room to negotiate.
Breaking Down the Numbers by Region
San Diego County is a diverse area, and market conditions vary depending on where you are. Let’s break down some of the key regions to consider when buying or selling a home.
Metro San Diego: Slight Price Gain
In Metro San Diego, including neighborhoods like North Park, South Park, and downtown, prices have held steady, with a modest increase of 1.1%. These areas are still seeing relatively strong buyer interest, but the market is starting to cool slightly, with homes staying on the market a bit longer.
North San Diego County: A Larger Drop in Prices
North San Diego County has seen a more significant drop in median sales prices, down 4% from last year. The median price for a home in this region is still high at $1.2 million, but homes are sitting on the market longer. In fact, days on market have increased by 50%, and homes are now selling for 98.6% of their list price—another indicator that buyers have more room to negotiate.
East County: More Affordable Options
For buyers considering East County, the price drop has been less significant, down just 1.2%, with the median sales price sitting at $492,000. However, inventory is up by 10%, and homes are taking longer to sell. If you're looking for more affordable options, East County may present an opportunity, especially as some sellers may be more willing to accept lower offers.
What Does This Mean for Buyers and Sellers?
For Buyers: If you’re in the market for a home, now may be a good time to strike. While interest rates remain a challenge, inventory is up, giving you more options to choose from. Sellers are becoming more open to negotiations, which means you could potentially secure a deal below asking price, especially in areas like North County and East County.
For Sellers: If you’re considering selling, be aware that prices are no longer increasing at the rapid pace they once were. You’ll need to price your home carefully and be prepared for it to stay on the market longer than expected. The good news is that homes are still selling, but strategic pricing and home presentation are key to ensuring your home stands out in a more competitive market.
The Bottom Line
While the San Diego housing market is experiencing some changes, it’s not a time to panic. Home prices are still above the $1 million mark for detached single-family homes, but the slight downward trend gives both buyers and sellers a chance to reassess and adjust their expectations. As always, if you have questions about the market, or if you’re thinking about buying or selling in San Diego, feel free to reach out. I’m here to help you navigate the shifting landscape and find the right solution for your needs.
