Are Home Prices Finally Coming Down in San Diego?

By Rieder Homes

Dennis and Mance Rieder are the dynamic father-and-son duo behind Rieder Team Realty, bringing decades of combined experience and a genuine passion for the San Diego real estate market.

It’s the question we hear the most from clients right now: are home prices in San Diego finally coming down?

The national news doesn’t tell the full story. Yes, rates have been high. Yes, the national market has slowed. Nationally, home prices are up about 1% year over year, which is still positive growth, just slower than the 3% to 5% increases we saw in recent years. But pricing is hyper local, and what’s happening nationally doesn’t always match what’s happening here in San Diego.

The San Diego market has cooled, but it’s not dead. Inventory has improved across San Diego County. There are more homes available for sale. Buyer competition has cooled off. We’re no longer seeing 10, 15, or 20 offers on a single property. At most, a really desirable home might get a handful. Things are moving slowly for most properties, but homes that are perfectly remodeled and ready to move into are still selling fast.

Rates are in the mid-6s, and some buyers are waiting for them to drop. Others are waiting to see what happens with the economy. But homes are still being bought and sold. There are about 5,000 homes on the market right now, with roughly 500 going pending and 500 selling each week. The market is active.

Prices are still going up, just slower. San Diego has seen a year-over-year price increase of about 1.1% across the board, including detached homes, condos, and land. The median single-family home price in San Diego is around $1.05 million.

The average condo is trading around $665,000. Multiple sources, including Zillow and Redfin, show the same trend: slower growth, but still positive. This is what a normal market looks like. Not booming. Not declining. Steady.

There are no major crash indicators. A normal San Diego market has around 6,000 homes available. During the 2008-2009 crash, that number exploded to 11,000-12,000. During COVID, it dropped to around 3,000, which sparked the frenzy. Right now, we’re at about 5,000. That’s close to normal. We’re stabilizing, not crashing.

What this means if you’re buying. There’s less competition right now than there has been in years. More inventory. More room to negotiate. If you’re a first-time buyer, there are grants available and we can work with sellers on points and concessions. Prices are still going up 1-2% annually, so waiting doesn’t save you money.

Our advice: buy now and hold. Be married to the home, date the rate. When rates drop, you refinance. It could take three to six months to find the right home in this market, so the sooner you start, the better.

What this means if you’re selling. If your home is in great condition and move-in ready, it will sell quickly. If it needs work, we specialize in renovations and can help you add value before you list. You’re not going to get the COVID-era prices where homes sold for 5-10% over asking, but you can expect a predictable process with clear timelines based on local data.

Every situation is different. Whether it’s the right time to buy or sell depends on your family’s situation, your current housing, and your goals. We’re happy to sit down with you for a strategy call or consultation to talk through your options and build a personalized plan.

Watch our video above for the full breakdown. Call or text us at 858-779-0823, email info@riederhomes.com, or DM us on social media. You can also visit riederhomes.com for more information. We’re looking forward to serving you.