San Diego Home Sales Slow to 41 Days: Why Your House Isn't Selling (December 2025)
TL;DR: San Diego Market Slowdown (December 2025)
San Diego's housing market has cooled significantly in late 2025. Homes now take 41 days to sell (up from 28 days last year), median prices dropped 2.1% to $930,000, and 34% of listings had price drops. The slowdown stems from affordability strain (homes cost 8.7x median income), higher mortgage rates (7%+), and buyer hesitation. For sellers facing extended listing periods, cash buyers offer speed (7-14 day closings) and certainty (no financing contingencies) versus the traditional 41+ day timeline.
If your San Diego home has been sitting on the market longer than expected in December 2025, you're not alone.
San Diego's real estate market has shifted dramatically in the final months of 2025. What was once a seller's market where homes flew off the shelf in weeks has transformed into a slow-moving landscape where properties linger and price cuts become the norm.
According to the latest Redfin data from October 2025, San Diego homes now take an average of 41 days to sell—up 13 days from last year's 28-day average. The median home price has declined 2.1% year-over-year to $930,000, and more than one-third of listings (34%) have been forced to reduce their asking prices.
If you're a homeowner wondering why your listing isn't attracting offers, or considering whether to wait out the market or pursue faster alternatives, this article examines the data behind San Diego's slowdown and what it means for your selling strategy in December 2025 and beyond.
The Numbers: San Diego's Market Slowdown by the Data
Days on Market Nearly Double
The most striking indicator of San Diego's cooling market is the dramatic increase in days on market. Per Redfin's October 2025 report:
- 41 days: Current average time to sell a home in San Diego
- 28 days: Average time last year (October 2024)
- 13-day increase: Represents a 46% longer selling timeline
This extended timeline means sellers are carrying mortgage payments, property taxes, insurance, and maintenance costs for nearly two additional weeks compared to 2024. For a $930,000 home with a typical monthly cost of $6,000-$7,000, that's an extra $3,000-$4,500 in carrying costs.
Price Drops Become the Norm
Perhaps even more concerning for sellers: price reductions are no longer exceptional—they're the expectation. Redfin data shows:
- 34.0% of San Diego listings had price drops in October 2025
- 31.1% had price drops in October 2024
- +2.9 percentage points: Year-over-year increase in price reduction frequency
This means roughly 1 in 3 sellers must lower their asking price to attract buyers. These reductions typically range from 1-5% of the original list price, translating to $9,300-$46,500 on a $930,000 home.
Median Prices Declining Across San Diego County
While San Diego remains one of the nation's most expensive markets, prices are softening:
- $930,000: Current median sale price (October 2025)
- $950,000: Median price one year ago (October 2024)
- -2.1%: Year-over-year decline
- -$20,000: Absolute price decrease
This 2.1% decline may seem modest, but it represents a significant shift from the double-digit appreciation San Diego experienced during 2020-2022.
Why San Diego Home Sales Are Slowing: The Root Causes
1. Extreme Affordability Crisis (8.7x Income Ratio)
The fundamental challenge facing San Diego's housing market is affordability. According to a November 28, 2025 San Diego Union-Tribune analysis:
- • San Diego's median home price ($985,092) is now 8.7 times the median household income ($112,933)
- • This makes San Diego the third least affordable metro in America (behind LA/Orange County and San Jose)
- • The average household must dedicate 51% of monthly income to principal and interest payments
- • It would require a 40% home price drop AND 70% income increase to return to 1990s affordability levels
This affordability strain has effectively priced out traditional buyers who rely on mortgage financing, shrinking the pool of qualified buyers competing for homes.
2. Mortgage Rates Remain Elevated
Even buyers who can technically qualify face sticker shock from interest rates:
7.2%: Average 30-year fixed mortgage rate (late 2025)
3%: Rate environment in 2021-2022
On a $930,000 home with 20% down ($186,000), the monthly payment difference is stark:
- • At 3%: $3,132/month (principal + interest)
- • At 7.2%: $5,040/month (principal + interest)
- • $1,908/month more at current rates
This $1,900+ monthly increase translates to $22,896 in additional annual housing costs—more than 20% of San Diego's median household income.
3. Two-Tier Market: Luxury Thrives, Mid-Market Struggles
San Diego's market has split dramatically along price lines. A November 18, 2025 Union-Tribune report highlighted:
- Luxury market ($6M+): Selling in 223 days (down from 750 days), with $50M+ sales in Del Mar and La Jolla
- Traditional market: 2024 sales totaled just 25,920 transactions—the second-slowest year since 1988
This "K-shaped" recovery means cash-flush buyers are competing for high-end properties, while middle-market homes (where most sellers operate) face anemic demand. As market analyst Steven Thomas told the Union-Tribune: "There's people flush with cash creating a K-shaped economy."
4. Seasonal Timing (December Slowdown)
December is traditionally one of the slowest months for real estate:
- Buyers focus on holidays rather than house hunting
- Families avoid moving during the school year
- Inclement weather (even in San Diego) reduces showing activity
While San Diego's climate is mild, the psychological effect of year-end timing compounds the market's structural challenges.
The Financial Impact on Sellers: Carrying Costs Add Up
Monthly Carrying Costs for San Diego Homes
Every additional day your home sits on the market costs money. For a typical San Diego home at $930,000:
Monthly Costs:
- • Mortgage (assuming $744K loan at 7%): ~$4,950
- • Property taxes ($930K × 1.25%): ~$970/month
- • Insurance: ~$150/month
- • Utilities: ~$200/month
- • Maintenance: ~$150/month
- Total: ~$6,420/month
Extended Timeline Impact:
- • 28 days (2024 average): $5,992 in carrying costs
- • 41 days (2025 average): $8,774 in carrying costs
- • Extra 13 days = $2,782 in additional costs
If you also need to reduce your price by 2-3% to attract buyers ($18,600-$27,900), the total cost of a slow sale can easily exceed $20,000-$30,000.
Cash Buyers: The Speed and Certainty Alternative
Traditional Sale vs. Cash Sale Timeline
The contrast between traditional and cash sale timelines is stark:
| Sale Type | Timeline | Key Steps |
|---|---|---|
| Traditional Sale | 12-18 weeks (84-126 days) |
|
| Cash Sale | 7-14 days |
|
Cash buyers can close 6-11x faster than traditional sales, eliminating months of carrying costs and uncertainty.
Beyond Speed: Other Cash Buyer Advantages
1. No Financing Contingencies
Traditional buyers rely on mortgage approval—which can fall through even after accepting an offer. Cash buyers don't need lender approval, eliminating this risk.
2. No Appraisal Requirements
Cash purchases typically waive appraisal contingencies, avoiding deals falling apart when appraisals come in low.
3. Sell As-Is (No Repairs)
Cash buyers purchase properties in current condition, saving sellers the time and expense of repairs, staging, and updates.
4. Flexible Closing Timeline
Need to close quickly due to relocation? Or need more time to find your next home? Cash buyers often accommodate seller timelines.
5. Lower Transaction Costs
No need to pay for extensive repairs, staging, or prolonged carrying costs during a multi-month listing period.
Frequently Asked Questions
Why are San Diego homes taking longer to sell in 2025?
San Diego homes now take 41 days to sell (up from 28 days in 2024) due to extreme affordability challenges (homes cost 8.7x median income), elevated mortgage rates (7%+), and a two-tier market where luxury sells while mid-market struggles. Additionally, 34% of listings require price drops to attract buyers in the slower market.
What is the median home price in San Diego right now?
As of October 2025, San Diego's median home price is $930,000, down 2.1% from $950,000 one year ago. This represents a $20,000 decline year-over-year, though San Diego remains one of the nation's most expensive markets.
How much does it cost to keep a house on the market in San Diego?
Carrying costs for a typical $930,000 San Diego home run approximately $6,420/month (mortgage, property taxes, insurance, utilities, maintenance). With the current 41-day average selling timeline, sellers pay roughly $8,774 in carrying costs—$2,782 more than last year's 28-day average.
What percentage of San Diego homes have price drops?
According to Redfin's October 2025 data, 34% of San Diego home listings had price drops—up 2.9 percentage points from 31.1% last year. This means roughly 1 in 3 sellers must reduce their asking price to attract buyers in the current market.
How fast can cash buyers close in San Diego?
Cash buyers typically close in 7-14 days in San Diego, compared to the traditional 41+ day timeline (plus additional weeks for inspections, appraisals, and financing). This 6-11x faster timeline eliminates months of carrying costs and uncertainty for sellers.
Is December a bad time to sell a house in San Diego?
December is traditionally one of the slowest months for real estate due to holidays and year-end timing. Combined with 2025's affordability challenges and elevated rates, December sellers face a particularly difficult environment. Cash buyers can be especially attractive during slow seasons when traditional buyer traffic is minimal.
What neighborhoods in San Diego have the slowest sales?
While specific neighborhood data varies, the Union-Tribune's analysis shows mid-market neighborhoods struggle most, while luxury coastal areas (La Jolla, Del Mar) maintain stronger activity. Areas with median prices near $930,000 face the longest days-on-market as they hit the affordability ceiling for most traditional buyers.
Should I wait for the San Diego market to improve or sell now?
This depends on your situation. If you need to sell due to relocation, financial pressure, or inheritance, waiting risks accumulating carrying costs ($6,420/month) with no guarantee of improvement. The Union-Tribune analysis suggests it would take a 40% price drop AND 70% income increase to restore 1990s affordability—unlikely in the near term. For time-sensitive situations, cash buyers offer certainty.
Sources & Citations
| Source | Data Points | Date |
|---|---|---|
| Redfin | Median price $930,000 (-2.1% YoY), 41 days on market (up from 28), 34% listings with price drops (+2.9 pp) | Oct 2025 |
| San Diego Union-Tribune | Home prices 8.7x median income, 51% payment burden, would need 40% price drop + 70% income increase for 1990s affordability | Nov 28, 2025 |
| San Diego Union-Tribune | Luxury market: 223 days (down from 750), Traditional market: 25,920 sales (2nd-slowest since 1988), K-shaped economy | Nov 18, 2025 |
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