San Diego, California, January 3, 2026
San Diego home prices have declined for the sixth consecutive month, with a 0.10% decrease noted in October. This decline marks a year-over-year drop of 0.59%, contrasting with a national average increase of 1.36%. Factors influencing this trend include elevated mortgage rates and persistent affordability challenges. Homeowners may struggle with reduced property values, while buyers could find opportunities amid rising costs. The trajectory for the housing market remains uncertain as stakeholders monitor economic conditions closely.
San Diego Home Prices Decline Again in Latest Case-Shiller Report
San Diego, California – San Diego home prices have experienced a decline for the sixth consecutive month, according to the latest data from the Case-Shiller Home Price Index. In October 2025, local home prices fell by 0.10%, marking a 0.59% decrease compared to the same month in the previous year.
National Context
Nationwide, home prices also saw a slight decrease of 0.16% in October. However, San Diego’s year-over-year decline of 0.59% is more significant than the national average increase of 1.36%.
Market Dynamics
The prolonged decline in San Diego’s housing market is attributed to several factors:
- Elevated Mortgage Rates: Mortgage rates have remained near 6.3%, increasing borrowing costs for potential buyers.
- Affordability Challenges: Inflation has outpaced home price gains, intensifying affordability pressures and potentially leading to minimal price appreciation or outright declines in some markets.
Implications for Homeowners and Buyers
For homeowners considering selling, the current market conditions may present challenges due to decreased home values and reduced buyer demand. Conversely, buyers may find opportunities in the market but should be mindful of higher mortgage rates and affordability constraints.
Historical Perspective
This trend follows a period of rapid price increases in San Diego’s housing market. For instance, in May 2025, the median price for an existing single-family detached home was $1,100,000, reflecting a 0.9% increase compared to April 2025.
Looking Ahead
The future trajectory of San Diego’s housing market will depend on various factors, including economic conditions, interest rates, and housing inventory levels. Stakeholders are advised to monitor these developments closely to make informed decisions.
Frequently Asked Questions (FAQ)
What is the latest trend in San Diego home prices?
San Diego home prices have declined for six consecutive months, with a 0.10% decrease in October 2025 compared to the previous month.
How do San Diego’s home price changes compare to national trends?
While nationwide home prices decreased by 0.16% in October 2025, San Diego experienced a year-over-year decline of 0.59%, which is more significant than the national average increase of 1.36%.
What factors are contributing to the decline in San Diego home prices?
The decline is attributed to elevated mortgage rates, which have remained near 6.3%, and affordability challenges due to inflation outpacing home price gains.
What does this mean for homeowners and potential buyers in San Diego?
Homeowners may face challenges in selling due to decreased home values and reduced buyer demand, while buyers might find opportunities but should be mindful of higher mortgage rates and affordability constraints.
How did San Diego’s housing market perform in previous years?
In May 2025, the median price for an existing single-family detached home was $1,100,000, reflecting a 0.9% increase compared to April 2025.
Key Features of San Diego’s Housing Market Decline
| Feature | Details |
|---|---|
| Decline Duration | Six consecutive months of price decreases |
| October 2025 Price Change | 0.10% decrease compared to the previous month |
| Year-Over-Year Change | 0.59% decrease compared to the same month in the previous year |
| National Comparison | San Diego’s decline is more significant than the national average increase of 1.36% |
| Contributing Factors | Elevated mortgage rates and affordability challenges due to inflation |
| Implications for Homeowners | Potential challenges in selling due to decreased home values and reduced buyer demand |
| Implications for Buyers | Opportunities in the market, but mindful of higher mortgage rates and affordability constraints |
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Author: STAFF HERE SAN DIEGO WRITER
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