News Summary
San Diego County’s median home price dropped to $889,500 in August, marking a 1.2% decrease from the previous month. Despite a slight increase in home sales to 2,439, these numbers indicate the second-lowest August sales since 1988. The market shows signs of cooling, with an increased average selling time and rising inventory levels. Although mortgage rates are declining, affordability challenges primarily affect buyers. Other Southern California counties also experienced home price reductions, while overall California prices rose slightly. Analysts express cautious optimism as the year progresses.
San Diego County’s median home price has declined for the first time in 2025, dropping to $889,500 in August. This represents a 1.2% decrease from the previous month, according to data from Attom Data Solutions. The decline marks a significant shift in the housing market, which had seen stable or increasing prices throughout much of the year, despite ongoing affordability challenges.
In August, home sales in San Diego County remained historically low, although they experienced a slight increase. A total of 2,439 homes were sold, which is up 2.4% from the same period last year. However, this figure represents the second-lowest number of home sales for an August since records began in 1988.
Current trends indicate that while the sellers’ market is showing signs of cooling, it has not yet fully transitioned into a buyer’s market. The average time for a home to sell in the county increased to 40.5 days in August, the longest selling period in over four years, compared to a much quicker sales pace in early 2022.
Home inventory levels are also on the rise, with approximately 7,000 homes available for sale in San Diego County in August, significantly higher than the 5,700 homes listed during the same month last year. The median sale price for single-family homes in the county fell to $997,250, down 1.3% from July. On the other hand, the median price for condos or townhouses increased to $693,750, up 6.7% from the previous month.
Another influencing factor in the housing market is the recent decline in mortgage rates. The average interest rate for a 30-year fixed mortgage has decreased from 6.56% at the end of August to 6.3% the following week. Despite this drop, challenges in affordability persist, with the monthly payment for a median-priced home in San Diego County reaching approximately $4,900, assuming a 20% down payment of $177,900.
When looking at regional trends, median home prices in several counties across Southern California also saw decreases in August. Notably, Los Angeles County’s median price fell 1.8% to $893,500, while Orange County’s dropped 2.2% to $1.15 million. Riverside County experienced a 0.7% decrease, bringing its median price to $595,000, while San Bernardino County remained unchanged at $520,000. In Ventura County, the median price decreased by 2.5% to $829,000.
In contrast to the local market, the overall median sale price for an existing single-family home in California was reported at $899,140 in August, increasing 1.7% from July and 1.2%year-over-year. Additionally, San Diego County’s median extra a slight downturn from $1.04 million in July to $1.02 million in August, while still seeing a year-over-year increase from $1.01 million in August 2024.
Looking ahead, market analysts express cautious optimism for a potential improvement in home sales for the remainder of the year, driven by the recent decline in mortgage rates.
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Additional Resources
- 10 News
- San Diego Union Tribune
- NBC San Diego
- Axios San Diego
- Redfin Blog
- Wikipedia: San Diego
- Google Search: San Diego Housing Market
- Google Scholar: San Diego real estate
- Encyclopedia Britannica: San Diego
- Google News: San Diego Housing Market
Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
