You may have heard that San Diego home prices dropped approximately 3% compared with last year. That figure applies to the City of San Diego median sale price for the three months ending May 2026.
But that headline does not tell the whole story.
Countywide, the median sale price was approximately $922,000, which was up about 0.4% from the same period last year. Within the City of San Diego, the median was approximately $954,000, down about 3%.
Two seemingly conflicting statistics can both be accurate because they measure different locations and a mix of different homes. Neither figure tells you exactly what your property is worth.
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What the Latest Sales Numbers Show
The market is still active. More than 2,260 San Diego County homes sold during May, and the median market time was approximately 23 days.
Countywide, homes sold for an average of approximately 99.4% of their final asking price. About 38.5% sold above list price, while approximately 19.9% of active listings had a price reduction.
That is the real story: some homes still attract multiple offers, while others sit on the market and reduce their price. The difference is often the neighborhood, price range, condition, presentation and original asking price.
Buyers Have More Choices—but the Best Homes Still Sell
Buyers may have more negotiating room on homes that have been listed for several weeks, need updating or have already reduced their price. Depending on the property and seller, buyers may be able to negotiate:
- A lower purchase price
- Closing-cost assistance
- Mortgage-rate buydown credits
- Repairs or a repair credit
- Flexible closing or possession dates
However, correctly priced homes in desirable locations can still sell quickly and receive competing offers. Waiting for every home to become a bargain is not a strategy. The better approach is identifying the listings where the seller may actually be willing to negotiate.
What Sellers Should Do Now
Do not base your asking price on a countywide headline, an automated estimate or what a neighbor hoped to receive. Look at the most relevant recent sales, current competition and pending listings in your immediate area.
Pricing too high can cause a home to sit, lose its initial momentum, and eventually require a larger reduction. Pricing correctly does not mean giving the home away. It means positioning it so buyers see the value and have a reason to act.
Before listing, you should know:
- The likely selling-price range
- Your estimated selling expenses
- Your approximate net proceeds
- Which improvements are worth doing
- Whether a cash offer or traditional sale is more practical