The San Diego Market Shift: Is This the "Cool-Down" We've Been Waiting For?

If you've been following the San Diego real estate market, you know the past few years have felt like a sprint. Well, the October 2025 data is in, and it looks like the market has finally decided to slow down and catch its breath.

This isn't a crash; it's a correction. And for the first time in a long time, we're seeing a clear shift in dynamics. Buyers have a bit more breathing room, and sellers need to be more strategic.

Here’s a breakdown of what’s happening in San Diego County, based on the latest report.

  1. The Headline: Prices and Pace Are Pumping the Brakes

For the first time in a while, the big story is a year-over-year dip in median sales prices.

  • Detached Homes: The median price fell 2.7% from last October, landing at $1,011,500.

  • Attached Homes (Condos/Townhomes): This market saw a similar dip of 2.8%, with a median price of $660,000.

So, why the dip? A big reason is that properties are simply sitting on the market longer. The days of "list on Friday, pending by Sunday" are becoming less common.

Days on Market (DOM)—the time from listing to an accepted offer—has jumped significantly.

  • Detached homes sat for an average of 41 days, a 20.6% increase from last year.

  • Attached homes sat for 45 days, a 12.5% increase.

This slowdown gives buyers what they've been missing: time to think.

  1. A Tale of Two Inventories: Detached vs. Attached

This is where the story gets really interesting. The "San Diego market" isn't one single entity; it's behaving very differently depending on what you're buying or selling.

The Detached Market: Still Tight If you're selling a single-family home, it's still very much a seller's market. Inventory (the number of homes for sale) for detached properties actually decreased by 1.5% compared to last year. The Months Supply of Inventory (a measure of how long it would take to sell all active listings) is down to just 2.5 months. This low supply is what's keeping the market for detached homes competitive, even with the price dip.

The Attached Market: Buyers Gain Leverage This is where the real shift is. Inventory for attached homes jumped by 10.0% year-over-year.

This surge in available condos and townhomes pushed the Months Supply of Inventory up by 10.0% to 3.3 months. While this is still historically low, that 10% increase is a significant gain in choice and negotiating power for buyers. More options mean sellers have to compete more on price and condition.

  1. The Silver Lining: A Small Boost in Affordability

Here’s the good news that ties this all together. With prices dipping slightly—and national reports of mortgage rates hitting their lowest point in over a year—affordability has (fractionally) improved.

The Housing Affordability Index measures whether a typical family can afford the median-priced home. A higher number is better.

  • For detached homes, the index rose 5.0%.

  • For attached homes, the index rose 4.9%.

This is a small but welcome sign for buyers who have been patiently waiting on the sidelines.

What This Means for You

  • For Sellers: The market is re-balancing. Your pricing and marketing strategy are more critical than ever. You can no longer assume a record-high price in a single weekend. Be prepared for your home to be on the market for 30-45 days, and price it correctly from day one.

  • For Buyers: You have leverage. You have time to perform inspections, negotiate, and (especially in the attached market) actually choose from multiple properties. This is the most balanced market we've seen in your favor in a long time.

The takeaway? The San Diego market isn't crashing; it's normalizing. This shift demands a smarter, data-driven approach from everyone involved.

 

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