Conversational question:
Are rates going to drop, and should you sell your home in San Diego before they do?

Short answer:
Rates may decline over time, but waiting solely for lower rates can cost you leverage, pricing power, and access to serious buyers who are already active in the San Diego market today.

If you’re thinking about selling a home in San Diego, rates are probably top of mind. You hear headlines. You hear predictions. And it’s natural to wonder if waiting for lower rates will put you in a better position.

Here’s the honest answer. Sometimes it does. Often, it doesn’t.

At Peraza Real Estate, this is one of the most common questions sellers ask. And the decision isn’t just about rates. It’s about timing, inventory, buyer behavior, and how the San Diego real estate market actually moves.

Let’s break it down clearly and realistically.

How rates really affect San Diego home sellers

Rates affect buyers more directly than sellers. Higher rates raise monthly payments. Lower rates increase buying power. But in San Diego, buyer demand has always been driven by lifestyle, job stability, and long-term ownership, not just short-term rate changes.

Even when rates climbed into the mid-6 percent range, homes still sold in neighborhoods like North Park, Chula Vista, Clairemont, Otay Ranch, and Eastlake when they were priced and positioned correctly.

Why? Because buyers don’t wait forever.

They adapt.

Some buyers adjust their price range.
Some negotiate credits.
Some use temporary rate buydowns.
And many move forward because San Diego remains a place people want to live.

Are rates expected to drop, and when might that happen?

No one can predict rates with certainty. That includes economists, lenders, and the media.

What we do know is this:

Rates usually drop gradually, not overnight.
Buyers react quickly even to small rate changes.
Sellers who wait often face more competition once rates fall.

When rates drop, more buyers re-enter the market. But more sellers list too. That shift matters.

At Peraza Real Estate, we’ve seen sellers wait for “better conditions,” only to list later alongside a wave of new inventory. That often leads to more price reductions, longer days on market, and less negotiating leverage.

Why waiting for lower rates can backfire in San Diego

San Diego is a supply-constrained market, but inventory still rises in waves.

If rates drop:

Buyer confidence increases
Sellers rush to list
Competition rises quickly

When competition increases, buyers gain options. And that changes how aggressively they write offers.

Right now, many buyers are cautious but serious. They’re negotiating, yes. But they’re engaged and ready.

That’s a very different environment than a crowded market where buyers can wait, compare, and delay decisions.

What current San Diego market behavior tells us

Here’s what we’re seeing on the ground:

Well-priced homes are still selling within roughly 30 to 45 days.
Buyers are more focused on monthly payment than headline price.
Seller concessions often work better than price cuts.
Homes that sit usually miss the strongest buyer window early.

Neighborhoods with strong walkability, school districts, or proximity to job centers continue to outperform broader averages. This includes areas like North Park, South Park, Eastlake, Otay Ranch, Clairemont, Serra Mesa, La Mesa, and San Carlos.

Rates matter. But pricing, condition, and presentation matter more.

Should you sell before rates drop? Here’s how to decide

The better question isn’t when rates will drop.

It’s when your home is positioned best.

Selling now may make sense if:

You have meaningful equity
You plan to move within the next year anyway
You want less competition
You’re open to buyer incentives instead of price cuts

Waiting may make sense if:

You don’t need to move
You’re still improving the property
You plan to hold long term regardless of market shifts

This isn’t about rushing. It’s about control.

How smart San Diego sellers use rates to their advantage

Experienced sellers don’t fight rates. They work around them.

Common strategies we use at Peraza Real Estate include:

Seller-paid temporary rate buydowns
Closing cost credits that lower buyer payments
Strategic pricing to stay under key payment thresholds
Marketing that emphasizes monthly affordability, not just price

These approaches often attract stronger buyers without sacrificing net proceeds.

What happens if you wait and rates do drop?

If rates fall meaningfully:

Buyer demand increases quickly
Inventory rises shortly after
Days on market compress
Price sensitivity increases

That doesn’t automatically mean higher prices. It often means more activity, more listings, and more noise.

Selling into a calmer, less crowded market can be just as powerful.

Why local expertise matters more than rate predictions

National headlines don’t sell homes. Local strategy does.

San Diego behaves differently from most markets. Military presence, biotech and healthcare jobs, remote work, and limited land all shape demand here.

At Peraza Real Estate, homes are priced based on real buyer behavior, not forecasts. Showing activity, buyer feedback, and neighborhood-level trends are tracked weekly to help sellers make confident decisions.

That’s how smart timing happens.

Final thoughts

Rates will move. They always do.

But your leverage as a seller depends more on timing, competition, and strategy than the exact rate you see on the news.

If you’re thinking about selling a home in San Diego, clarity beats guessing every time.

Call to action

If you want an honest, pressure-free conversation about whether selling now or waiting makes sense for you, reach out to Peraza Real Estate.

We’ll walk through your options, your timing, and your numbers so you can make the right decision for your situation.

Professional disclaimer:
This content is for informational purposes only and is not tax, legal, or financial advice. Always consult licensed professionals for guidance specific to your circumstances.