October 22, 2025

San Diego County Home Prices See Decline

News Summary

Home prices in San Diego County are declining, with an overall drop of 3% according to recent data. While most cities experienced decreases, Carlsbad and Rancho Santa Fe saw price increases. The market remains volatile with a longer selling period and ongoing affordability challenges for homeowners. The median sale price for homes has fallen below $1 million for the first time, highlighting significant shifts in the local real estate market.

San Diego County, California – Home prices in San Diego County are continuing to decline, according to recent data released by Zillow. From September 2024 to September 2025, the average home prices fell by 3% across the region. This decline in home values affected nearly all cities within the county, with the exception of just six areas.

Among those areas that experienced increases, Carlsbad saw the most significant rise, with average home prices climbing to nearly $1.24 million in September 2025, reflecting a 4% increase from approximately $1.19 million the previous year. Additionally, Rancho Santa Fe recorded an increase, with average home prices reaching $4.27 million, up by $30,000 year-over-year. Other communities, such as Bonsall, Alpine, Fallbrook, and Encinitas, also reported slight increases in home prices.

In contrast, Mount Laguna experienced the steepest drop in home values, with a 13% decrease translating to a loss of $41,452. Other areas reporting declines include Palomar Mountain, which saw an 11% drop, and Borrego Springs and Boulevard, which reported 8% declines. Imperial Beach faced significant losses, with home values declining by an average of $41,450. Overall, San Diego homeowners faced a decrease of over $43,405, marking a 4% drop in home prices.

In terms of sales activity, August 2024 indicated a median home price for San Diego County of $889,500, which represented a 1.2% decrease from the month prior. Despite low sales figures and ongoing affordability issues, home prices had remained stable or even increased for certain portions of the year. Home sales in San Diego County totaled 2,439 in August, which was a 2.4% increase compared to the previous year. However, the July home sales number of 261,820 showed a slight downturn from the 264,640 homes sold in August of the previous year.

Notably, the median time it took for a home to sell in San Diego County reached 40.5 days in August, marking the longest period in over four years. During this time, there were approximately 7,000 homes available for sale, up from 5,700 the prior year. The median sale price for single-family homes fell to $997,250, a 1.3% dip from July. Conversely, the median price for condo and townhouse properties surged to $693,750, a notable 6.7% increase in just one month.

A decrease in mortgage rates from 6.56% to 6.3% may catalyze further sales, as speculated by real estate agents. For buyers, the estimated monthly payment for a median-priced home in August was around $4,900, assuming a 30-year mortgage with a 20% down payment, equating to $177,900.

Real estate experts have highlighted that challenges related to affordability and stagnant wage growth remain significant barriers in the housing market. Looking at a broader perspective, the median price for existing single-family homes in San Diego County dropped below $1 million for the first time, landing at $990,000, which illustrates a 3.4% decline from the previous month. This trend aligns with a typical long-term average decrease of 1.8% seen between August and September.

In September, San Diego County’s home sales dipped by 2% compared to August; however, they were still 14% higher than the same month last year, suggesting ongoing volatility in the market. On a statewide level, the median home price was $883,640 in September, marking a 1.8% increase compared to the previous year. Economists have suggested that while conditions may improve in the housing market, uncertainties in the broader economy could impede a swift recovery.

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Additional Resources

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.

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