Are real estate prices dropping in San Diego?
Right now, San Diego home prices are stabilizing after years of rapid growth. While some neighborhoods have seen slight declines, overall prices remain high due to low inventory and steady demand. If you're thinking about selling, timing and strategy are everything.
Understanding the Current San Diego Real Estate Market
San Diego is one of the most dynamic housing markets in the country. In 2021 and 2022, prices soared across the county. Since then, interest rate hikes, economic uncertainty, and affordability concerns have shifted the landscape. As of mid-2025, the market has cooled from its peak, but it hasn’t crashed.
According to recent data from the Greater San Diego Association of REALTORS®:
The median home price in San Diego County was $925,000 in June 2025, down just 1.5% from the previous year.
Active listings remain 30% lower than pre-pandemic averages, keeping competition high.
Average days on market have increased slightly to 25 days, up from 17 days in 2023.
While price appreciation has slowed, San Diego remains a high-demand region with limited housing supply, especially in coastal and family-friendly areas like Chula Vista, North Park, and Clairemont.
What’s Causing the Shift in Pricing?
Several key factors are driving price trends in San Diego real estate:
1. Higher Interest Rates
Mortgage rates have hovered around 6.5% to 7% in 2025, impacting buying power. As a result, some buyers are hesitant, and others have adjusted their budgets, leading to more balanced negotiations.
2. Seasonal Market Adjustments
Spring and summer often see more listings, but even in those active months, pricing depends on neighborhood and condition. In slower months, prices may dip slightly due to lower demand.
3. Shifting Buyer Priorities
Buyers in San Diego are prioritizing energy efficiency, updated homes, and outdoor living space. Homes that meet these criteria are still commanding top dollar.
Are Prices Dropping in Every San Diego Neighborhood?
Not exactly. Real estate is hyper-local. Some neighborhoods are seeing leveling off, while others remain hot:
Chula Vista: Family-friendly with good schools, still sees strong demand.
North Park: Popular among young professionals, prices are steady with minor dips.
La Jolla: The Luxury market is slower to move, but prices remain resilient.
City Heights: Slight price corrections as first-time buyer activity cools.
That’s why working with a hyper-local expert like Peraza Real Estate is key. We help you understand pricing trends block-by-block, not just citywide.
Should You Wait to Sell?
Many homeowners are asking: "Should I wait for prices to go back up?"
Here’s the truth: if you're waiting for the peak of 2022 to return, it may not happen soon. Instead, focus on:
Your personal timing (job changes, family needs, financial goals)
Current market readiness (how well-prepped your home is)
Working with the right team to attract serious buyers fast
At Peraza Real Estate, we help sellers get top dollar even in shifting markets. Our pricing strategies, staging support, and targeted marketing are built for results.
Tips for Selling in Today’s San Diego Market
Here are a few things you can do to stay ahead:
Price strategically: Avoid overpricing in a market that rewards accuracy.
Invest in first impressions: Curb appeal and clean interiors matter.
Promote key upgrades: Solar, A/C, and move-in ready finishes attract buyers.
Work with a local expert: Peraza Real Estate knows what sells in your neighborhood.
What Buyers Are Thinking
Buyers are cautious but serious. Many are waiting for the right home to hit the market. That means sellers who present their home well, market it effectively, and price it realistically are still seeing multiple offers.
Why Work With Peraza Real Estate?
Peraza Real Estate is known across San Diego for local expertise, honest advice, and strong negotiation skills. Whether you're in Eastlake, Mission Hills, or Lemon Grove, our team has the market insight to guide you.
We don’t just list homes—we sell them, with proven strategies tailored to San Diego buyers.
Final Thoughts
While prices have cooled slightly in some areas, San Diego remains a competitive, high-value market. The right time to sell depends more on your goals than on the headlines.
If you're considering selling, let's talk. Peraza Real Estate can help you navigate your options, run a pricing analysis, and create a strategy that works for your timeline and bottom line.
Ready to sell smart in San Diego? Contact Peraza Real Estate today.