Navigating the San Diego Real Estate Market: A Broker’s Analysis of the Latest Mortgage Rate Trends
As a seasoned real estate broker in the vibrant San Diego market, I’m constantly asked: “Is now a good time to buy or sell?” The answer is always nuanced, but recent shifts in the financial landscape offer some compelling insights. A recent article from the San Diego Union-Tribune highlighted a modest but significant dip in the average U.S. long-term mortgage rate, which now sits at 6.18% [1]. While this national trend is a positive sign for buyers, it’s crucial to understand its specific implications for our unique San Diego market.
A Glimmer of Hope for Buyers
The article notes that the 30-year fixed-rate mortgage has eased from its peak, offering a slight reprieve from the higher rates we saw a year ago. For San Diego buyers, who face one of the most competitive and high-priced markets in the nation, any reduction in borrowing costs is welcome news. With the median price for a single-family home in San Diego County hovering around $1,050,000, a lower interest rate can translate into substantial savings over the life of a loan, potentially making a home purchase more attainable for those on the fence [2].
However, it’s important to maintain perspective. While rates have dipped, they are still above the historic lows of recent years. This “new normal” requires a shift in mindset. Buyers should focus less on timing the market for the absolute lowest rate and more on finding a property that fits their long-term financial goals and lifestyle needs. The slight dip we’re seeing now could be a strategic window to lock in a rate before any potential future increases.
What This Means for San Diego Sellers
For sellers, the current environment presents a balanced opportunity. The article points out that home listings are up sharply from last year, and many sellers are adjusting their asking prices as homes take longer to sell. In San Diego, we’re seeing a similar trend. While demand remains strong, the frenzied bidding wars of the past are becoming less common. The market is stabilizing, with the average days on market now between 43 and 49 days [2].
This doesn’t mean it’s a bad time to sell. Far from it. Property values in San Diego have shown remarkable resilience, with a 3.0% year-over-year increase in the median price for single-family homes [2]. My advice to sellers is to be strategic. Pricing your home competitively from the outset is key. A well-priced home in a desirable San Diego neighborhood will still attract significant interest. It’s about adapting to a market that is returning to a more sustainable, healthy pace.
Practical Advice for the Current Market
For Buyers:
•Get Pre-Approved: With rates in flux, getting pre-approved for a loan is more important than ever. It gives you a clear picture of your budget and shows sellers you’re a serious contender.
•Think Long-Term: Don’t let short-term rate fluctuations derail your long-term homeownership goals. If you find a home you love and can comfortably afford the monthly payments, it’s worth pursuing.
•Be Prepared: Even with a slight cooling, the San Diego market is competitive. Work with a knowledgeable local agent who can help you navigate the landscape and craft a compelling offer.
For Sellers:
•Price it Right: Overpricing your home can cause it to languish on the market. I can provide a comprehensive market analysis to help you determine the optimal listing price.
•First Impressions Matter: With more inventory on the market, making your home stand out is crucial. Professional staging, high-quality photos, and addressing any needed repairs can make a significant difference.
•Be Flexible: Be prepared to negotiate. The market is more balanced, and buyers are looking for value. A willingness to be flexible on terms can lead to a successful and timely sale.
The Bottom Line
The San Diego real estate market is dynamic and ever-changing. The recent dip in mortgage rates, while modest, is a positive development for both buyers and sellers. It signals a market that is finding its equilibrium, offering opportunities for those who are well-informed and strategically positioned. Whether you’re looking to buy your dream home or sell your current property, my team and I are here to provide the expert guidance and local market knowledge you need to succeed.
Ready to make your move in the San Diego real estate market? Visit our website to browse current listings and connect with one of our experienced agents today!
Reference:
Based on “Average US long-term mortgage rate ticks down to 6.18% this week,” read the full article here: https://www.sandiegouniontribune.com/2025/12/24/mortgage-rates-dec-24/
Sources:
[1]: # "The San Diego Union-Tribune, “Average US long-term mortgage rate ticks down to 6.18% this week,” December 24, 2025."
[2]: # "Luxury SoCal Realty, “San Diego Housing Market (December 31st 2025 Statistics & Forecast),” December 31, 2025."