If the San Diego housing market feels unusually quiet, you are not imagining it. Homes are taking longer to sell, buyers are hesitating, and sellers are still hoping for pricing from the peak years. Several new reports reveal exactly what is driving this slowdown and what it means for anyone watching San Diego real estate right now.
A Big Shift Nationally
Nationally, sellers now outnumber buyers by nearly 37 percent, according to Newsweek and Redfin. That is the widest gap since 2013. In simple terms, for every 100 buyers, there are about 137 homes for sale. At the same time, buyer activity has dropped to one of the lowest levels since early 2020.
Affordability is the main reason. Monthly mortgage payments are significantly higher than they were a few years ago, and many buyers are stepping back until conditions improve. Meanwhile, sellers continue listing because life events keep moving, even if the market does not.
This tension between supply and demand has created a nationwide pause.
How San Diego Fits Into the Picture
Locally, San Diego housing trends are following the same path. A new CBS8 report shows that San Diego homes now take 40 days to sell, which is 10 days longer than last year. That shift places San Diego 18th in the nation for longest days on market.
Redfin’s Chief Economist notes that this slowdown is a clear sign of a buyer’s market in San Diego. Homes are staying active longer, inventory is increasing, and buyers have more negotiating power.
Here is what the latest San Diego real estate update shows:
- San Diego median home price: $898,000, down about 1.2 percent
- Inventory: up 7 percent year over year
- Price reductions: appearing on 30 to 35 percent of listings
- Days on market San Diego: steadily rising in most neighborhoods
Some properties are sitting for two to three months, and many sellers are even delisting their homes if they do not get the activity they expected.
What Sellers Should Expect
For anyone thinking about selling a home in San Diego, strategy matters more than ever. Buyers today are cautious and very payment sensitive. They want homes that are updated, move-in ready, and priced realistically for today’s conditions.
Sellers should be prepared for:
- Longer marketing periods
- More negotiation from buyers
- Importance of staging and presentation
- Adjusting price expectations to reflect the current San Diego real estate market
Homes that are priced correctly and show well still move. Everything else tends to sit.
What Buyers Can Take Advantage Of
For buyers, this is one of the best windows of opportunity we have seen in years. With more San Diego homes for sale, longer days on market, and motivated sellers, there is genuine negotiating power again. You can take your time, compare neighborhoods, and shop without the intense pressure of the past few years.
The best homes still sell quickly, but the overall pace of the San Diego housing market is much more balanced.
A Detail Most People Miss
Even though many metros are leaning toward buyer-friendly conditions, affordability continues to limit demand. According to Redfin, there are about 1.4 million buyers in the market today. Before the pandemic, that number averaged around 2 million, and at the peak in 2016, there were 2.4 million buyers.
This means it is technically a buyer’s market, but only for buyers who can afford to be in the market.
Final Thoughts
The San Diego housing market is not crashing. It is cooling, slowing, and rebalancing. Homes are sitting longer, prices are softening slightly, and buyers are gaining leverage. Whether you are planning to buy or sell, now is the time to understand the numbers and shape your strategy around them.
If you want to talk about your neighborhood or your home’s current value, feel free to reach out. I'm always happy to chat.
Until next week's edition of San Diego Housing Market Mondays. Happy Thanksgiving!
