San Diego home prices slightly drop. Could they fall further?

San Diego County’s median home price dropped slightly in February as sales picked up.

The region’s median home price was $872,000, said Attom Data Solutions, down 1.5% from January and down 2% in a year. The median, which combines sales of single-family homes, townhouses and condos, hit a high of $915,000 in June 2024.

Slight price reductions were not the only thing potentially helping buyers in February: Mortgage rates fell to their lowest level since 2022. The average 30-year, fixed-rate mortgage rate was 5.98% in the last week of February, according to Freddie Mac.

February’s data represented transactions before the Iran conflict, which saw mortgage rates rise sharply as it went on, up to 6.46% average by mid-April. Motor fuel costs rose sharply in San Diego County and throughout the nation, potentially limiting buyers’ spending power.

Mark Goldman, a real estate analyst with C2 Financial Corp., said it’s possible home prices would continue to marginally decrease, or at least not rise much, as uncertainty over the economy remains.

“There were several shocks to the market in March,” he said. “It’s one thing for the (stock) market to go up and down every day, but a housing purchase is a long-term decision. I don’t expect prices to start going up.”

It’s possible lower mortgage rates spurred some home sales. In January, the county had 1,615 home sales - its lowest in recorded history going back 35 years. In February, there were 1,972, a 22% increase.

Goldman said the jump in sales was likely a relief to those in the real estate industry, but also not a lot to write home about. While 1,972 home sales is notable, it isn’t near typical averages. It wasn’t that long ago, in 2021, when San Diego County was averaging around 4,000 sales a month.

The number of homes for sale have been increasing, but the reasons could be mixed. About 46% of listed homes in San Diego County in February were sold in two weeks, said the Redfin Data Center. That compares to 47% at the same time last year, 57% in 2024 and 54% in 2023.

If homes are taking longer to sell, it could partially explain why there were about 5,180 homes listed for sale in February. That’s about the same as February 2025 but more than shoppers are used to in past years - 3,600 in 2024 and 3,300 in 2023.

Jan Ryan, a real estate agent in North San Diego County, said most people she saw putting homes up for sale at the start of the year were empty nesters leaving the state to be closer to adult children who have moved to other places.

She said she was surprised by how little discussion of mortgage rates actually came up among buyers and sellers.

Home prices varied by type in February. The median single-family home price was $1 million, flat year-over-year. The median townhouse and condo price was $675,875, down 6% annually.

San Diego County's annual median price largely followed similar patterns to the rest of Southern California. Here's a look at medians - the point where half of the homes sold for more and half sold for less- across the region:

Los Angeles County: Up 1.2% monthly for a median home price of $882,875; Down 1.9% annually.

Orange County: Unchanged monthly for a median of $1.175 million; Down 2.2% annually.

Riverside County: Monthly rise of 3% to a median of $592,000; Down 3% in a year.

San Bernardino County: Up 2.8% monthly to a median of $530,000; Flat year-over-year.

San Diego County: Down 1.5% monthly for a median of $872,000. Down 2% annually.

Ventura County: Up 1.1% in a month to a median of $859,5000; Down 1.8% in a year.

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This story was originally published April 20, 2026 at 2:06 PM.