Are home prices falling in San Diego? No. San Diego home prices were up about 1.6% year over year as of July 2026, according to the S&P Cotality Case-Shiller Index. National asking prices have dipped this fall, but much of that is normal seasonal cooling.
Whether you own a home or you're hoping to buy one, you care about prices. But the headlines don't make it easy. One says prices are falling. The next says they're still climbing.
Which one is right? It depends on where you live.
What's Really Going On with Asking Prices
Much of the confusion comes from headlines about falling asking prices, without the full context.
Right now, there are more homes for sale nationally than at any time since November 2019, according to HousingWire Data. With rates up since spring, those homes are taking longer to sell, and a sharper asking price helps a home move.
HousingWire shows the national median asking price dropped from $449,000 in early August to $435,000 two months later. That's about a 3% dip, and much of it is normal for this time of year.
Asking prices cool every fall once the summer rush ends. Fewer buyers are out, so sellers price more competitively. Today's rates play a role too, since sellers are pricing to match what buyers can afford. That's a good thing. Smart pricing helps homes sell.
Keep in mind, that's a national list price. It doesn't tell you what homes in your neighborhood are actually selling for.
Where You Live Changes Everything
Realtor.com makes the point that national headlines may suggest a buyer's market, but what's happening on the ground depends on where you're buying, your price range, and the type of home.
The latest S&P Cotality Case-Shiller Index shows how wide that gap can be. Over the year ending in July:
Chicago: up 6.9%
New York: up 5.8%
San Diego: up 1.6%
Seattle: down 1.6%
That's a nearly 9-point spread between the strongest and weakest major markets.
San Diego sits in the middle: still rising, just at a slower, steadier pace. And within San Diego County, coastal, inland, and North County neighborhoods don't always move together. Price range and property type matter too.
That's why your game plan should be built on local data, not national headlines.
Why You Don't Need to Worry About a Crash
If you're seeing small declines in some markets and wondering whether a bigger drop is coming, here's the perspective:
Even in the major metros where prices are down, the declines are under 2%. That's a long way from 2008.
More major markets are up than down.
The markets with small declines are mostly ones that overheated during the pandemic.
Over time, home values have a strong track record. The Federal Housing Finance Agency (FHFA) reports national prices have risen year over year every quarter since 2012. Go back further, and a $100,000 home bought in 1991 would be worth about $436,000 today, even after the 2008 crash.
The market is heading back to normal, and normal means prices rise over time.
What This Means for You
It comes back to my three pillars: location, condition, and price.
Sellers: Price for today's buyers and your specific neighborhood, not a national headline. Condition and presentation still drive top dollar.
Buyers: Some areas and price ranges offer more room to negotiate than others. Local data tells you where.
Frequently Asked Questions
Are home prices going down in San Diego?
As of July 2026, San Diego prices were up about 1.6% year over year, according to the S&P Cotality Case-Shiller Index. Prices vary by neighborhood, price range, and property type.
Why are asking prices dropping?
Asking prices typically cool every fall as buyer activity slows. Higher rates and more homes for sale are also leading sellers to price more competitively.
Is the housing market going to crash?
Current declines in the weakest major markets are under 2%, far from 2008. National prices have risen year over year every quarter since 2012, according to FHFA.
Let's Look at Your Neighborhood
National headlines can't tell you what your home is worth or how much room you have to negotiate. Local data can. If you're thinking about buying or selling in San Diego County, call or text me and let's look at how prices are moving in your area.
Billie Bourgeois | REALTOR® Real Broker | San Diego County, CA DRE# 01703336
