San Diego Real Estate is Changing FAST
Is the San Diego real estate market changing fast right now?
Yes. If you’re buying or selling in the San Diego real estate market, this isn’t a crash, it’s a shift in how homes get priced, negotiated, and approved, driven by higher borrowing costs and policy changes that are starting to show up neighborhood by neighborhood, which is why Melina Rissone focuses on hyper-local pricing and negotiation strategy instead of one-size-fits-all advice
What’s Really Happening in the San Diego Real Estate Market?
When people hear “changing fast,” they picture a sudden drop in prices. That’s not the clean story in San Diego.
What you’re seeing more often is a pause. Buyers are still in the market, but they’re far more payment-conscious. Sellers are still listing their homes for sale, but many don’t feel pressure to move quickly. That creates a market where some homes sell quickly and others sit, even when they look similar online.
To put some recent context around the pace, It’s reported that in the end of 2025 the City of San Diego had a median sale price around $930,000 with homes averaging about 37 days on market. At the county level, data showed a median around $900,000 with about 42 days on market.
Those numbers don’t describe a freefall. They describe a market where strategy matters more than momentum.
Is San Diego’s Market Collapsing?
A collapse usually involves forced selling, a surge in inventory, and rapid, broad price cuts. The “pause” on the other hand looks different.
The biggest reason for this is borrowing costs. As of 2026, Freddie Mac’s weekly average for a 30-year fixed mortgage was around 6%.
That rate level changes your monthly payment enough that many buyers have to adjust, even if their income is solid. At the same time, many homeowners are sitting on much lower existing rates or significant equity, so they don’t feel pressure to accept a lower price just because the market feels slower.
That’s why you can see homes listed at prices that seem optimistic, alongside other homes that are priced correctly and move fast.
Why “For Sale” Doesn’t Always Mean It’s Priced to Sell
In today’s San Diego housing market, a “For Sale” sign doesn’t always mean “we have to sell.” Sometimes it means “we’ll sell if we get our number.”
If you’re buying, this is where frustration comes from. You tour a home, it’s listed high, and you assume the seller wants to negotiate. But many sellers are testing the market or protecting a net number they have in their head.
If you’re selling, this is where your opportunity is. If your home is truly ready to sell, and you price it to match today’s buyer behavior, you can stand out fast against listings that are more like “maybe sales.”
This is also why days on market can feel confusing. Homes aren’t sitting only because buyers disappeared. Homes sit when pricing and condition don’t match what buyers are willing (or able) to do at today’s payments.
Buyer Concessions vs. Seller Price Expectations
Right now, many buyers are looking for relief in a few predictable ways. They want a lower price, help with closing costs, or terms that reduce risk, like repair credits or a clearer path through inspections.
Sellers often feel less urgency because moving is expensive. If you’re trading a low mortgage rate for a higher one, your next payment may look worse even if you “downsize.” That reality makes some sellers hold firm unless they truly need to move.
This standoff shows up in negotiation behavior. A recent snapshot from The Greater San Diego Association of Realtors reported percent of original list price received in the high 96% to 97% range in their detached and attached summaries, alongside longer days on market compared to the prior year.
According to Melina, buyers have leverage in the right situations, but sellers are not automatically “giving homes away.”
How Higher Borrowing Costs Affect Home Buyers in San Diego
In San Diego, you’re not just shopping for a home. You’re shopping for a payment. Higher rates tend to push buyers toward a few choices. You might look at a smaller home, shift from a detached home to a condo or townhome, expand your neighborhood search, or negotiate harder for seller credits that can reduce cash-to-close or buy down the rate.
You can also see the payment pressure in how buyers compare property types. The median sales price was reported at $1,050,000 for detached homes and $680,000 for attached homes.
So if you’re trying to buy, that gap matters because it often determines whether you stay in your target neighborhood or adjust the type of home you’re willing to consider.
How the New Housing Rules in San Diego Are Changing Neighborhoods
This is one of the biggest “behind the scenes” shifts in the San Diego market, and it can affect you whether you’re buying or selling.
San Diego has been using incentive-based programs to encourage more housing near transit. One example is the City’s Complete Communities Housing Solutions program, which is designed to support added housing capacity in targeted areas, often in exchange for affordability and other community benefits.
State rules also play a role. California’s SB 9 framework can allow, under certain conditions, additional units and/or lot splits in single-family zones, though eligibility rules and local constraints matter a lot in real life.
And ADUs remain a major piece of the conversation. San Diego’s ADU and JADU rules include practical requirements that can change feasibility and cost, including extra constraints in areas like Very High Fire Hazard Severity Zones.
If you’re buying, you don’t need to fear change, but you should understand what could change around you. A quiet street can stay a quiet street, while a corridor nearby gets more housing and more activity.
If you’re selling, zoning and development possibilities can influence your strategy. Sometimes the value isn’t only the house. It’s also the lot, the layout, and what a future buyer might be able to do with it.
How Does New Construction Affect San Diego’s Housing Market Trends?
It’s easy to assume that if San Diego builds more homes, prices will drop quickly. More housing supply helps over time, but it doesn’t tend to create instant affordability in a high-demand coastal market.
New construction takes time, financing is expensive, land is limited, and costs are high. Even when permitting improves, you still have the challenge of delivering enough units fast enough to change prices broadly.
For perspective, UC Berkeley’s Terner Center has tracked San Diego permitting in recent years on the scale of roughly 9,000 to 10,000 units annually, with affordable units as a smaller subset, which highlights both progress and the size of the gap.
So if your plan is “I’ll just wait until new construction fixes everything,” that may keep you on the sidelines longer than you want, without guaranteeing the outcome you’re hoping for.
Where San Diego Real Estate Will Change Fastest Next: Redevelopment and Small Multifamily
If you want to see where San Diego real estate is changing fastest, watch redevelopment patterns and small multifamily.
You’ll notice more attention on older properties in prime locations, lots with development potential, and areas near transit and services where incentives make projects pencil out more often.
This doesn’t mean every neighborhood is about to be transformed. It means the market is becoming more “micro.” What happens in Bankers Hill won’t look the same as what happens in Mira Mesa. What happens near a transit corridor won’t mirror what happens on an interior street. The direction of change depends on location, lot characteristics, and policy overlays.
Home Seller Tips in Today’s Housing Market
If you’re thinking about selling in San Diego, your biggest advantage is clarity. Buyers are cautious. They compare closely. They notice condition. They notice layout. They notice smell, noise, parking, and deferred maintenance.
In a pause market, your pricing has to match your property’s real position in the market. If your home is turnkey, priced correctly, and presented well, you can still get strong results. If it needs work, you can still sell, but the pricing and negotiation approach has to be honest about what buyers will take on at today’s payments.
This is exactly where Melina Rissone can help you. You get a neighborhood-specific strategy, clear positioning, and a negotiation plan that fits how buyers are behaving right now, not how you wish they were behaving.
Home Buyer Tips in Today’s Housing Market
If you’re buying, your edge comes from patience and selectivity, not fear. The best opportunities tend to come from situations where the price and the market reality are out of sync, or where the home has been sitting long enough that the seller becomes more flexible.
You also want to focus on the payment, not just the list price. In this market, smart buyers ask for seller credits when it makes sense, keep inspection and appraisal risk in mind, and stay open to a wider set of neighborhoods if the payment pressure is real.
And because policy changes can influence neighborhood trajectories, you’ll benefit from understanding whether you’re buying in an area that may see more housing and redevelopment over the next several years. That’s not automatically good or bad, but it can affect your day-to-day experience and long-term value.
Professional and Legal Notes to Keep in Mind
Real estate decisions can overlap with legal, tax, and financial decisions, especially if you’re dealing with divorce, inheritance, trusts, or investment structuring. You should always get guidance from the appropriate licensed professional for those areas.
And when you’re choosing neighborhoods, schools, or communities, decisions and conversations should always stay compliant with Fair Housing rules. You can and should focus on your own needs and preferences, but the process must avoid steering or discriminatory criteria.
Conclusion: How to Make a Smart Move in a Fast-Changing San Diego Market
San Diego real estate is changing fast because the market is pausing, not collapsing. Buyers are reacting to higher borrowing costs. Sellers are reacting to the cost of moving. And housing policy changes are slowly reshaping what gets built and where.
If you want a plan that fits your neighborhood, your timeline, and your numbers, reach out to Melina Rissone for a personalized strategy for buying or selling in San Diego.
Melina Rissone
Having sold properties for more than 20 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers selling homes and luxury condominiums. Her loyal clientele would share that Melina brings structure and planning to chaos. She specializes in supporting her clients and their referrals; families and individuals going through divorce and seniors and active adults planning their moves and financial decisions during their retirement years.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
Certified Senior Advisor by the Society of Certified Senior Advisors
RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
SRES Certification through NAR is a Seniors Real Estate Specialist certification.
Melina is bilingual in English and German.
Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
Coldwell Banker Presidents Elite Award.
Recognize as the Top 2% of Coldwell Banker West in 2024.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing Certified.
Melina is on point, extremely resourceful and well connected. She has a very versatile knowledgebase so was able to help guide us in many areas I was not even expecting from an agent. I've referred her to several friends who all reported great experiences. She takes her role in representing her client very seriously so its not like some kind of half time gig thing. She gets it done.
-Dan C.
