Are Home Values Rising or Falling in San Diego?

If you’ve read the latest housing headlines, you’ve probably seen some conflicting takes.

And when you zoom out, it makes sense as to why: A new Zillow report found that, in half of the country’s largest metros, home values rose over the past year. In the other half, they fell. 

So today, we’re breaking down what’s happening nationally, and more importantly, how it compares to what we’re seeing here in San Diego.

National Market Trends

At the national level, home values have barely moved, rising just 0.2% over the past year. 

• Home values rose in 25 major markets, mostly in the Midwest and Northeast. Cleveland (+4.7%) and Hartford (+4.5%) led the pack.

• Home values fell in 25 markets, especially in the South and West. Tampa (-6.2%), Austin (-6%), and Miami (-4.6%) saw the steepest declines.

Aside from home prices, here’s what’s happening across the country:

• Sellers cut prices on 27.4% of listings, the highest rate since tracking began in 2018.

• Homes are lingering on the market longer, with a median 60 days on market, the slowest July in over a decade.

• Mortgage costs are down slightly, about $19 per month compared to last year, but still nearly $1,000 higher than before the pandemic. 

That means affordability remains a challenge, even in markets where buyers have the upper hand.

What’s Happening in San Diego

National trends don’t always tell the full story. Here in San Diego:

• Median home price: $949,000.

• Price cuts: 31% of listings had reductions compared to 27.4% nationally

• Days on market: Homes here are selling in 27-49 days on average, compared to the national 60-day median.

What It Means for Buyers

• More Negotiation Power. With 31% of listings seeing price cuts (higher than the national 27.4%), buyers have leverage. Sellers are adjusting expectations, which means you can negotiate better terms or get in at a lower price.

• Still a Competitive Market. Homes are selling in 27–49 days, much faster than the national 60-day median. This shows San Diego is still in demand, so buyers need to be prepared—pre-approval and quick decision-making matter.

What It Means for Sellers

• Pricing Strategy Matters More Than Ever. If you list too high, you’re likely to end up among the 31% making price cuts. Pricing correctly upfront avoids sitting on the market and protects your bottom line.

• Homes Still Move Faster Than Nationally. Even with cuts, homes in San Diego move 10–30 days quicker than the national pace. For motivated sellers, that’s a sign the demand is strong—well-marketed homes will sell.

The Bottom Line

Kara Ng, a senior economist at Zillow, summed it up best: “Perhaps more than ever, whether it’s a good time to buy depends on where you live.”

The housing market is split nationally, but what really matters is what’s happening locally. If you’re thinking of buying or selling in San Diego, the numbers show that strategy matters more than ever. 

Pricing, timing, and presentation will determine who wins in this market.