San Diego Coastal Real Estate Update – What the Headlines Miss (September 2025)

If you've been following real estate headlines lately, you’ve probably seen reports about rising inventory, price drops, and a market shifting in favor of buyers. But here’s the thing: those headlines don’t tell the full story—especially not in coastal San Diego.

As someone who specializes in the areas west of the 15—from Downtown San Diego up to Encinitas—I want to walk you through what’s really happening in our local market.

📍 The Importance of Hyper-Local Real Estate Trends

Real estate is always local. National or even county-wide trends can be misleading if you’re buying or selling in a specific community. That’s why it's critical to understand the area and the property type being discussed.

🏡 Detached Homes: Prices on the Rise

Despite broader market shifts, detached homes along the San Diego coast actually saw a price increase at the end of August 2025. The median price rose to $1.872 million, a notable jump from just a month or two ago.

🏙️ Condos: Holding Steady

In contrast, condos have remained relatively flat, with prices hovering between $760,000 and $775,000. This type of stability can be encouraging for both buyers and sellers looking for predictability in an otherwise fluctuating market.

📊 Inventory Remains Steady

Inventory is another piece of the puzzle. The number of active listings across coastal San Diego has held fairly steady at around 2,000 units. Some homes drop off the market and relist, which can slightly skew the numbers, but overall, inventory hasn’t surged.

According to InfoSparks data, listings are spending about 4 to 5 weeks on the market—a timeline that reflects a balanced (not oversupplied) market.

📉 Slight Softening in List-to-Sale Price Ratios

We’ve seen a small drop in the percentage of asking price sellers are receiving. In recent months, that figure has gone from 96–97% down to 95–96%. It’s a subtle shift, but one that suggests buyers have a bit more negotiation power than earlier this year.

📉 Interest Rates Trending Lower

Here’s some good news for buyers: interest rates have dipped below 6.5% on a 30-year fixed mortgage for the first time in quite a while. Even a slight drop in rates can make a big difference in affordability, monthly payments, and long-term costs.

🎯 Your Real Estate Goals Are Unique

At the end of the day, every situation is different. Whether you’re buying your first condo in Pacific Beach or upgrading to a larger home in Encinitas, your real estate decisions should be based on your goals and your timeline—not headlines.

If you’re curious how this data impacts your plans or just want to stay ahead of market trends, I’d love to connect.