San Diego, California Housing Market

How much can you negotiate in San Diego?

Only 39 out of every 100 homes for sale have found a buyer. The other 61 are still waiting. Your offer may be the only one on the table. Few sellers are dropping their price. Asking prices are holding firm. Your discount will come from one stale listing, not from the whole market.

A typical San Diego home takes 41 days to find a buyer. Half of them take even longer. That is 5% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 2,261 homes for sale in San Diego. That is 5.0 times the tightest month on record, but below the peak of 2,595. Supply is steady against last year.

What to do about it

• Start in 92101, 92108, and 92115. Those are the three softest ZIP codes in San Diego.
• Filter for homes listed 60+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 92101 only 12 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in San Diego?

Asking prices are 28.5% below their May 2023 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. San Diego prices have risen in 78 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in San Diego?

Most San Diego households rent. 53 out of every 100 households are renters. That share has held steady for five years. 6.4% of homes sit empty. That is normal for a healthy market.

The median San Diego household earns $114,214 a year. Incomes here have grown 6.3% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 8.1 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. A tenant on the median income can pay about $2,855 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

What numbers should you underwrite a San Diego deal with?

• Price growth to assume — +2.8%/yr. 1 year: -4.5% · 5 years: +2.8% · ten years: +4.9%. Do not use the ten-year rate. Most of that growth landed in the 2020 and 2021 boom. The five-year rate is what San Diego does without one. Underwrite closer to +2.8%. Measure growth per square foot. San Diego median list price grew 1.9% a year, but price per square foot grew 4.9%. The gap is smaller homes, not weaker growth. The house you buy will not shrink. The one-year rate is a timing signal. It is not an underwriting input.
• Months of carrying cost — 2. A typical home takes 41 days to sell. Budget that long when you exit or refinance. It is 5% slower than a year ago.
• Odds you cut your price to sell — 1 in 6. About 18% of homes on the San Diego market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $691/sqft. The typical San Diego listing shrank from 1,864 to 1,323 sqft since Jul 2016. So median price hides real growth: 61% per sqft versus 20% on the median. Comp on median price and you will overpay for small homes.
• Competition when you exit — -1%. The number of homes for sale barely moved in a year. Today's comps are a fair guide to your exit.
• Price-to-income ratio — 8.1×. A typical home costs 8.1 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. Incomes are rising faster than home prices. Affordability is improving.
• Tenant rent ceiling — $2,855/mo. 30% of the median household income of $114,214. Rents above this line shrink your tenant pool fast.

Is San Diego a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in San Diego right now. 0.39 out of every 100 homes for sale have a buyer, 18% of sellers have cut their price, and a typical home takes 41 days to sell.

Are San Diego home prices going up or down?

Asking prices are 28.5% below their May 2023 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for San Diego?

+2.8%/yr. 1 year: -4.5% · 5 years: +2.8% · ten years: +4.9%. Do not use the ten-year rate. Most of that growth landed in the 2020 and 2021 boom. The five-year rate is what San Diego does without one. Underwrite closer to +2.8%. Measure growth per square foot. San Diego median list price grew 1.9% a year, but price per square foot grew 4.9%. The gap is smaller homes, not weaker growth. The house you buy will not shrink. The one-year rate is a timing signal. It is not an underwriting input.

How fast are homes selling in San Diego?

A typical San Diego home takes 41 days to find a buyer. Half of them take even longer. That is 5% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is San Diego a renters' market or an owners' market?

Most San Diego households rent. 53 out of every 100 households are renters. That share has held steady for five years. 6.4% of homes sit empty. That is normal for a healthy market.

What rent can San Diego tenants afford?

A tenant on the median income can pay about $2,855 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median San Diego household earns $114,214 a year.

Which San Diego ZIP code has the most negotiating room?

92101. Only 12 out of 100 homes there have a buyer, 18% have cut their price, and a typical home takes 54 days to sell.