Is Now a Good Time to Buy a House in San Diego?

Discover the truth about the San Diego real estate market in 2025. Find out if it's better to buy, rent, or wait. Local expert Derek Jones breaks it down.

Should You Buy a Home in San Diego Right Now? Here's the Real Answer

The question "Is now a good time to buy a house in San Diego?" is one almost every buyer is asking in 2025. And no wonder, with home prices, interest rates, and inventory all in flux, timing feels more important than ever. According to Zillow, San Diego’s median home price hovers around $982,733 — nearly 3x the national average. But does that mean you should wait? Or act now before prices rise again? In this post, I’ll answer that clearly and locally.

Hi, I’m Derek Jones, a Real Estate Agent serving San Diego County. With 10+ years helping buyers and sellers navigate our dynamic market, I bring both tech-savvy and hands-on guidance to your next move.

What is the real estate market like in San Diego right now?

San Diego’s market in 2025 is cooling, but still competitive.
Inventory has ticked up slightly, giving buyers a bit more breathing room compared to 2021 to 2022. However, desirable homes (especially under $1M) still sell quickly.

Why is San Diego real estate so expensive?

Because it’s San Diego.

You’re paying for year-round sunshine, limited land, and one of the strongest job markets in the country. Plus, the military, biotech, and tourism industries drive consistent demand. Limited new construction and strict zoning laws also restrict housing supply.

How much do you need to make to afford a home in San Diego?

To afford a median-priced home in San Diego County, buyers now need to earn about $241,200 annually, according to Axios and Redfin. That’s based on typical 20% down payment assumptions and a 30-year fixed mortgage.

This number will vary depending on your debt, credit score, and the specific neighborhood. VA and FHA loans, as well as first-time buyer assistance from CalHFA, can dramatically reduce upfront costs.

Is it cheaper to rent or buy in San Diego in 2025?

In the short term, renting is still more affordable. Bankrate reports that in every major U.S. city — including San Diego — the cost of buying exceeds the cost of renting in 2025.

Zumper lists the average 2-bedroom rent at about $3,000, while comparable mortgage payments may exceed $4,000 at current rates. That said, if you plan to stay 5+ years, buying usually leads to greater long-term wealth.

Where is the best place to buy a home in San Diego County?

If you're looking near San Diego’s scenic Bay Park area, you’re in luck — this region offers a balance of lifestyle, accessibility, and investment potential. Here’s how nearby neighborhoods break down:

Bay Park: Known for its coastal vibe and stunning bay views, Bay Park offers a mix of mid-century and modern homes with quick access to Mission Bay and the 5 freeway. It’s ideal for professionals and families wanting peace and proximity.
Clairemont: A slightly more affordable option nearby, Clairemont provides good-sized homes, great schools, and an easy commute to downtown or UCSD.
Morena: A small but up-and-coming pocket nestled between Bay Park and Mission Valley, Morena is great for buyers who want walkability to the Trolley and breweries.
Linda Vista: Offers a mix of single-family homes and townhomes, and is home to the University of San Diego. It's a strong choice for buyers looking for centrality and future appreciation.

Conclusion
Buying in San Diego isn’t cheap, but it can be smart. Especially if you plan to stay, value lifestyle, and want to build long-term wealth. My advice? Don’t time the market — time your life.

Let’s Talk Strategy

📞 Call or Text: (619) 980-2712
📧 Email: [email protected]
🌐 Website: DerekJonesRealEstate.com

Not your average REALTOR® — a Realtor with a tool bag.

FAQ:

Q: Are home prices dropping in San Diego in 2025?
A: Home prices in San Diego are not significantly dropping in 2025. The market has stabilized compared to the pandemic peak, but most industry experts, including Zillow and Redfin, predict flat to modest growth rather than a crash. That means we’re in a “normalizing” phase, not a downturn.

Q: Is San Diego still a seller’s market?
A: Yes, San Diego remains a seller’s market in early 2025, but it’s less extreme than recent years. According to Redfin, inventory has improved and bidding wars have cooled slightly, giving buyers more leverage. That said, well-priced homes still move quickly and may receive multiple offers.

Q: What loan options help buyers afford San Diego homes?
A: Several loan programs help make buying in San Diego more accessible. VA loans allow eligible buyers to purchase with 0% down, while FHA loans offer low down payments and flexible credit requirements. First-time buyers can also explore CalHFA programs which provide down payment assistance and competitive rates.

Q: How do I avoid overpaying in a hot market?
A: To avoid overpaying, work with a data-driven agent who understands local pricing and uses tools like AI to identify true market value. I analyze sold comps, buyer behavior, and micro-market trends to help you structure competitive, fair offers. Having someone in your corner who can spot overpriced listings — or underpriced gems — is key in this fast-paced market.