Is Now a Good Time to Negotiate on a San Diego Home?
For prepared buyers, yes. This fall, San Diego buyers have more negotiating room than they did a year ago. Realtor.com's September 2026 Monthly Housing Trends report found that 20.4% of listings in the San Diego metro area had a price reduction in September, and the median list price was $888,450, down 6.3% from a year earlier. Nationally, 20.8% of listings saw a price cut, the highest share in a single month since October 2022.
Why are more sellers cutting prices? Realtor.com points to mortgage rates, which climbed above 7% in September for the first time since January 2025. The report estimates that the move from 6.66% in late August to 7.03% on September 24 knocked roughly $11,500 off the buying power of a shopper on a fixed budget. Sellers responded by adjusting price rather than pulling homes off the market. Realtor.com senior economist Jake Krimmel noted that this is the time of year when leverage usually shifts toward buyers.
Does a lower list price mean San Diego homes are losing value? Not necessarily. List prices reflect what sellers are asking and which homes happen to be for sale. Earlier this week I shared that the S&P Cotality Case-Shiller Index, which tracks repeat sales of the same homes, showed San Diego values up 1.63% year over year in July. Asking prices are adjusting, while long term value has held up well.
San Diego also remains one of the steadier markets in the country. San Diego's price cut share of 20.4% was below the West's 22.8%, and while active listings grew in 43 of the 50 largest metros, the San Diego metro had 1.5% fewer listings than a year ago. Homes here also sold about three days faster than last September. That combination of limited supply and motivated sellers is what makes this window interesting.
How can buyers take advantage? I always tell them to start with a solid preapproval and a comfortable payment. Look closely at homes with a price reduction or a few weeks on the market, since those sellers are often most open to a conversation. Ask about seller credits toward closing costs or a rate buydown, which can be worth as much as a price cut. And as I like to say, date the rate, marry the house. You may be able to refinance if rates fall, but the right home at the right price is what you lock in.
How can sellers still win? I tell my sellers to price it right from day one. Realtor.com's data shows that buyers are responding to value, so a well priced, well presented home stands out. Be open to offering credits instead of chasing repeated price cuts, and make the home easy to say yes to with clean inspections, good photos, and flexible showings.
A calmer fall gives buyers time to decide thoughtfully and connects sellers with serious, qualified buyers. Owning a home in San Diego remains one of the best paths to long term wealth, and the best deals are often made when headlines sound cautious. Reach out and I will help you build a plan.
Quick answers
How many San Diego homes have price cuts? Realtor.com reported that 20.4% of San Diego metro listings had a price reduction in September 2026.
Is it a buyer's market in San Diego? Buyers have more negotiating room than a year ago, but supply remains limited. San Diego metro listings were down 1.5% year over year in September, while 43 of the 50 largest metros saw increases.