If you’ve been keeping an eye on the San Diego housing market, you’ve probably noticed that things are changing fast. Price reductions are becoming more common, and both buyers and sellers are starting to adjust their expectations.
In this week’s San Diego Market Update Monday, we’ll break down what’s happening nationally and locally, how deep these price cuts really go, and what it means for anyone looking to buy or sell a home in San Diego.
🎥 Prefer to watch instead? Click below to watch my full San Diego housing market update video where I walk through the charts and data in detail.
👉 Watch the full video here
📉 Price Cuts Are Spreading Across the U.S. Housing Market
Across the country, sellers are trimming prices to attract cautious buyers. Back in August, Redfin reported that one in six homes for sale had a price reduction, which was a record at the time. By October, that number had nearly doubled, with almost half of all active listings lowering their price.
According to HousingWire, 42% of single-family homes nationwide have reduced their list price. The average price cut is about 4%, just enough to bring buyers back without crashing values.
Normally, price drops taper off toward the end of summer when demand is strongest. But this year, the opposite happened. Even as fall began, the number of homes with price reductions kept rising.
Before 2020, price cuts hovered around 10 to 12%. Today, they’re nearly twice that.
⏳ Homes Are Taking Longer to Sell
The other big shift in today’s real estate market is time. Nationally, homes are sitting longer before finding buyers. The median days on market is now about 70 days, up from around 60 just a month earlier.
Overpriced homes are seeing the biggest slowdowns. Listings that start too high often sit 100 days or more, while competitively priced homes still attract attention and sell quickly.
🏠 Which Types of Homes Are Seeing Price Cuts?
According to Redfin, single-family homes are driving most of the reductions. Nearly one in five single-family listings had a price drop, compared with 12.8% of condos and 11.5% of townhomes.
This isn’t a crash, it’s a market correction. After years of bidding wars and double-digit price growth, home values are beginning to level out. Sellers who overshoot the market are now finding they need to adjust quickly to meet buyer demand.
🌴 The San Diego Housing Market: Local Numbers
Here in San Diego County, the trend is similar but slightly milder. About 22% of home sellers have lowered their asking price, cutting an average of 3.8%. These adjustments are most common in the $900,000 to $1.2 million range, a key segment for detached homes.
Despite those reductions, prices remain steady overall. The median home price in San Diego is about $900,000, up 1.1% year-over-year. Detached single-family homes average around $1.05 million, while condos and townhomes are closer to $670,000.
Pending sales have risen slightly, up 2.1% year-over-year, but homes are taking longer to sell. The average days on market is 37, which is roughly 23% longer than last year.
So, while prices are holding, sellers are facing longer wait times, and buyers are taking their time before making offers.
💡 Top 3 Strategies for Home Sellers in San Diego
If you’re thinking about selling your home in San Diego, it’s more important than ever to have a plan. Here are three strategies that can make a difference:
1. Price to the market, not to memory.
The hot seller’s market of 2021 and 2022 is gone. Buyers are informed, and they’re watching price cuts closely. Start at a realistic price based on recent sales in your neighborhood.
2. Prep before you list.
Get your home inspection done early, fix minor issues, and declutter before listing. Well-prepared homes photograph better and sell faster.
3. Be strategic with incentives.
Instead of lowering your price drastically, consider offering a rate buy-down or closing cost credit. These small incentives can help buyers manage higher mortgage rates without cutting deeply into your bottom line.
🔑 Smart Tips for Home Buyers in San Diego
If you’re planning to buy a home in San Diego, this cooling market might actually work in your favor.
1. Watch for homes with price cuts.
Homes that have already reduced their price often signal a motivated seller. Multiple reductions or re-listed homes can present great negotiation opportunities.
2. Get fully underwritten.
Work with a lender who can get your loan fully underwritten before you make an offer. This makes your offer stronger and can help you stand out even if your bid isn’t the highest. Not many lenders fully underwrite potential buyers, but if you’d like a recommendation, I’d be happy to share!
3. Know your micro-market.
A home in Poway, for example, behaves differently from one in Carlsbad or La Mesa. Work with a local San Diego Realtor who understands neighborhood trends and can guide your strategy.
🧭 The Big Picture: A Market Correction, Not a Crash
So where are things headed?
The San Diego housing market is normalizing. Prices are leveling out, days on market are lengthening, and sellers are learning to meet buyers where they are.
It’s not a crash. It’s a correction after years of rapid growth. A 3% to 4% price reduction might be what it takes to turn a “for sale” sign into “sold.”
For sellers, flexibility and timing are everything. For buyers, patience and preparation pay off.
💬 Final Thoughts
Whether you’re buying your first home or preparing to sell, understanding today’s San Diego real estate market gives you an edge. Every neighborhood tells its own story, and the right strategy can make all the difference.
If you’d like a personalized home value estimate or want to discuss how these trends affect your buying or selling plans, you can request a home valuation here or reach out to me directly.
🎥 Want to see the full charts and visuals from this report? Click here to watch my San Diego Market Update video on YouTube.
See you next week for another San Diego Housing Market Mondays!
