Where in San Diego are Real Estate Prices Dropping in 2025?

Real estate prices in San Diego always seem to go up, but are there really areas in San Diego where the prices have dropped? While the prices tend to trend upwards, there are certain areas and periods where the prices go down for a few months. In this blog, we’ll go over when prices tend to drop and where in San Diego prices are dropping.

When Do Prices Drop in San Diego?

When looking at the data for the past three years across San Diego county, a better question to ask is not where prices are dropping, but when do prices drop. When looking at areas all throughout San Diego county last year, prices tend to drop steadily from June to December for both single-family homes and condos. What does this mean for you? Well, if you’re a buyer, a good time to buy may be during the months of June to December as prices tend to decrease then. If you're a seller, it may be better to list your home in the late winter or early spring months to avoid the lowering of prices in the second half of the year.

Where in San Diego are Prices Dropping?

Now that we know when prices drop, where in San Diego are they dropping? If we narrow our focus to the areas that I specialize in (Metro, Metro Uptown, and Coastal South), we can see that prices for Condos and Single Family homes are trending downward in the Coastal South area. For single family homes in the Coastal South area, I’m seeing that the median sale price is down about 8.1% in February 2025 compared to median sales during the same time last year. 

Buyers, this may be your opportunity to purchase that single family home that you have been saving up for the past couple years. Homeowners, if you have been interested in downsizing from a single family home to something smaller, you may want to wait or put the home on the market in the spring where we traditionally see higher prices. 

Key Neighborhoods to Look At

As talked about in one of my previous blogs (which you can find HERE), there were a few neighborhoods in 2024 that I wanted to point out where I saw price decreases.

  • Townhomes and condos in Downtown San Diego (92101) saw a slight decrease with prices down about 2.7%.

  • Townhomes and condos in Mission Hills and Hillcrest (92103) also saw a slight decrease with prices down about 1.3%.

  • Single-family homes in Kensington and Normal Heights (92116) decreased last year by about 0.6%. 

Those decreases created some demand as prices are up in those areas in the early part of the year for condos. Surprisingly, the price of single family homes has started to trend downward in Kensington, Normal Heights, Mission Hills, and Hillcrest. If you’re interested in selling a condo and upgrading to a single-family home and you’re in those areas, now may be your opportunity to make that move. If you’re a homeowner in those areas and you’re looking to downsize, you may want to wait.

Overall, the prices of San Diego real estate can vary based on what area you're looking at and the time of year that you’re looking. We saw some downward trends for the past three years in the second half of the year and in the Coastal South area we’re seeing prices drop across property types. Lastly, Kensington, Normal Heights, Mission Hills, and Hillcrest may be key neighborhoods to look at now for Single-Family homes.

While it can be difficult to time the market, working with a top real estate agent in San Diego can help make the process go smoothly. Reach out today to discuss your home buying or selling needs and I’ll be happy to consult with you further. Select the link to book a consultation session. I look forward to serving you!

Melina Rissone

Having sold properties for more than 20 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers selling homes and luxury condominiums. Her loyal clientele would share that Melina brings structure and planning to chaos. She specializes in supporting her clients and their referrals; families and individuals going thru divorce and seniors and active adults planning their moves and financial decisions during their retirement years..

  • Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
  • Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015.
  • RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
  • SRES Certification through NAR is a Seniors Real Estate Specialist certification.
  • Melina is bilingual in English and German.
  • Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
  • Coldwell Banker Presidents Elite Award.
  • Recognize as the Top 2% of Coldwell Banker West in 2024.
  • Coldwell Banker Global Luxury and Institute of Luxury Home Marketing Certified.