If you have been watching the San Diego Housing Market and wondering, “Are prices finally easing?” the answer is yes, at least a little, and it is showing up across California.
A recent San Diego Union-Tribune report looked at Zillow home value data for 16 California metro areas and found that by the end of December 2025, 14 of the 16 were down year over year. That is the “88% of California” headline. The drops were mostly mild, with the largest dip cited in Stockton at down 4% in 2025.
This is not a crash. It is a shift in momentum.
What made the late-2025 softness stand out is how quickly the tone changed. As recently as March 2025, no California metro had falling prices year over year.
It is also a reminder that housing does not move in a straight line. Statewide, Zillow’s index was described as down 2% in 2025, after being up 3% in 2024, and still up 38% over the prior four years. Nationally, prices were described as essentially flat in 2025.
San Diego home prices: down 2%
For San Diego, home prices are about 2% down year over year for 2025, after being up about 4% in 2024, and still up about 51% over the previous four years.
That is why I keep calling this “softening,” not “freefall.” A 2% dip gets headlines because we have not had many of them lately, but zoom out and the long-term trend is still very much higher than pre-boom pricing.
The Latest San Diego Housing Market Stats
Here is where it gets interesting, because “San Diego” depends on what you are measuring.
On Redfin’s City of San Diego housing market page, the most recent snapshot shows a median sale price around $930,000, about 1.8% lower than last year, with homes selling in roughly 37 days and getting about 3 offers on average.
On Redfin’s San Diego County page, the picture is slightly different. It shows a median sale price around $900,000 in December 2025, up 2.3% year over year, with homes selling in about 42 days compared with 37 days the year before. It also shows 1,903 homes sold in December versus 1,855 the prior year.
If you have ever felt like real estate stats can sound conflicting, this is why. City vs. county, different housing mixes, and different segments moving at different speeds can all create slightly different headlines.
Median listing prices are adjusting
Another helpful data point comes from Realtor.com, where the San Diego County median listing price. It shows $899,999 in December 2025, down from $916,000 in November, and $950,000 in August 2025.
This does not mean every seller is cutting. It does suggest that, overall, sellers have been more willing to meet the market as inventory builds and buyers get more selective.
Mortgage rates edging lower
Mortgage rates have been drifting lower, which matters because most buyers shop payment first, not price first.
Freddie Mac’s weekly survey shows the average 30-year fixed mortgage rate at 6.06% as of January 15, 2026, down from 6.16% the prior week, and down from 7.04% a year earlier.
That drop compared with last year is meaningful. It can be the difference between qualifying and not qualifying, or between feeling stretched and feeling comfortable.
What this means for buyers
If you are a buyer, this is the kind of market shift that can quietly improve your experience. Not because San Diego suddenly becomes affordable, but because you may see more choice and a little more leverage, especially on homes that are overpriced for their condition or have been sitting.
The biggest thing I would watch is not the headline “San Diego is down 2%.” It is the day-to-day behavior: how often listings are reducing price, how long homes are sitting, and how negotiable sellers are being in your specific neighborhood.
What this means for sellers
If you are selling, the market is still active, but it rewards strategy more than it rewards optimism.
When buyers have options, they compare harder. They notice condition, layout, and value. Pricing to today’s micro-market, not last year’s peak, matters more. The right prep and presentation matter more. And negotiation is normal again.
Curious about your neighborhood?
San Diego real estate is a collection of micro-markets. If you'd like a closer look at your specific neighborhood or property, reach out to me at 858-335-4597, I'd be happy to help.
Until next week's episode of San Diego Housing Market Mondays. - Jade Lee-Duffy
