Market Shift Brings Leverage Back to San Diego Real Estate

• Where to Find Deals •

If you’ve been following the San Diego housing market lately, you may have noticed that after years of unpredictability, San Diego real estate is finally settling into a more familiar rhythm. This is the biggest shift we’ve seen since late 2022, and it’s driven by more than just interest rates.

More Homes for Sale Right Now in San Diego

Inventory is up significantly. In many San Diego neighborhoods, we’re seeing 40–60% more homes for sale than this time last year. That means more options, less competition, and better negotiating power for Buyers.

Many of these new listings are sitting longer than Sellers expected, especially listings that launched at ambitious prices or need cosmetic updates. This shift creates room for creative terms, closing cost credits, or rate buydown requests that might’ve been laughed off a year ago. As more inventory builds, so does your ability to shop with confidence instead of pressure.

Home Prices Dropping in San Diego Right Now

Price reductions are becoming more common, and the pace of home price appreciation is slowing compared to the peak pandemic frenzy. While prices haven’t collapsed and still trend upward, bidding wars have cooled down, and many cash Buyers have stepped back. That opens the door for more traditional Buyers to get in with solid terms and fewer roadblocks.

We’re also seeing a wider gap between list price and sale price in some San Diego neighborhoods, especially when Sellers adjust price mid-listing. Motivated Sellers are responding to market signals and refining expectations to get their homes sold. That kind of flexibility can make a big difference when you’re ready to write a smart, realistic Offer.

San Diego Market Shift More Cooldown than Crash

What we’re seeing right now in the San Diego housing market isn’t a real estate crash, it’s a cooldown. Prices are adjusting, housing inventory is rising, and the balance of power is shifting slightly back toward Buyers in some parts of San Diego. Other neighborhoods in coastal areas or along canyon pockets are still performing as mild Sellers’ markets.

But even there, list price and property condition are still under the microscope. That’s not a reason to panic. It’s a sign the market is stabilizing after an intense few years.

Buyers are negotiating again. Offer terms that were rare during the pandemic market are back: home inspections, appraisal contingencies, mortgage contingencies, and even home sale contingencies. If you’ve been waiting for your chance to buy a new house in San Diego without waiving contingencies, it’s here.

It Could Be a Better Time to Buy a House in San Diego

If you’re buying, this might be your window. We’re seeing smart, well-prepared Buyers getting great deals – sometimes under asking price – while locking in flexible terms and using buydown strategies to reduce monthly costs. With more homes on the market and many Sellers more open to negotiation, timing and strategy are paramount.

That doesn’t mean you have to rush. It means you have room to plan. With days on market increasing and Seller expectations softening, there’s breathing room and space to weigh your options. This way, you can make confident Offers that align with your financial goals, instead of reacting from fear of missing out.

San Diego Sellers Can Still Stand Out for Top Dollar

If you’re selling, strategy and price are everything. Overpricing will hurt you in this market, and stale public listings aren’t getting the same second chances they did in a red-hot market. But if you play it right, strong demand still exists. We can show you how to strategically price your home to attract serious Buyers without leaving money on the table.

Lean into high-impact staging, pre-listing prep, and small repairs to make your home stand out. In this market, presentation and timing are just as critical as pricing. Approach selling your home with a clear mind and focused goals to earn strong Offers from Buyers who are waiting for the right fit.

San Diego Real Estate Shift Signals Buyer Opportunity

The shift you’ve been waiting for may already be here, and it’s the perfect time to pick up your home search right where you left off. If you’re still on the sidelines waiting for a housing market crash, this could be the correction you’ve anticipated. Interpret this shift as a window of opportunity, and re-evaluate the current inventory of homes for sale in San Diego to identify real opportunities before they disappear.

Find value in the San Diego real estate market where others see noise. Use search filters and mortgage calculators to narrow your focus, clarify your budget, and uncover homes that align with your goals. This way, you can move with confidence while leverage is in your favor.

Some Buyers Wait While Others Jump In

The market is normalizing. This is what you’ve been waiting for! Buying your first place, planning a move-up, or selling your longtime home all call for decisions based on the market in front of you, not just the news headlines.

Start by running a fresh MLS search to see how many homes are available in your target area. It’s the easiest way to get a real-time feel for pricing, condition, and how far your budget goes today.

The Bottom Line: Strategy Beats Hype

When you’re ready to move forward, we’ll help you line up the right strategy to take full advantage of this inventory shift and renewed Buyer activity. More listings mean more possibilities, so the right home is within reach. Call Portia at 858.880.0195 or email portia.green@compass.com to map out your next move based on what’s actually happening in your market.

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