How do you buy a home in San Diego during a shifting real estate market?
Stay informed about market trends, work with a trusted local agent like the Schwarz Real Estate Group, and prioritize flexibility in your budget, expectations, and timeline.
What Is a Market Shift, and Why Does It Matter?
A market shift occurs when the balance between supply and demand changes. In San Diego, this might look like:
- Fewer homes for sale and more competition among buyers
- More listings and price drops as sellers adjust expectations
- Higher interest rates affecting affordability
Understanding what kind of market you’re entering is key to crafting the right home buying strategy.
1. Understand San Diego’s Current Market Conditions
Before diving in, take time to understand the local trends. As of mid-2025:
- Inventory is rising in some neighborhoods but remains tight in others.
- Price reductions are becoming more common in the $1.2M–$1.8M range
- Interest rates have remained above 6 percent, affecting monthly payments
We recommend:
- Reviewing monthly San Diego housing reports
- Following key metrics like median days on market, sale-to-list ratio, and buyer demand
- Consulting your agent on neighborhood-level insights
The Schwarz Real Estate Group provides personalized market data to help you feel confident in your timing and offers.
2. Get Pre-Approved and Know Your Numbers
With market volatility, it’s critical to know what you can afford:
- Get a current pre-approval letter based on today’s interest rates
- Understand how different price points affect your monthly payments
- Ask your lender to break down scenarios for rising or falling rates
Being prepared helps you act quickly in a fast-moving or cooling market.
3. Be Flexible With Your Must-Haves
In a shifting market, you may need to adjust your expectations. Consider:
- Prioritizing location over square footage
- Looking at homes with cosmetic updates vs. fully turnkey properties
- Being open to slightly longer commutes for better value
Work with your agent to separate your non-negotiables from your wish list.
4. Negotiate Smart — Not Just Hard
Depending on the shift, buyers may have more leverage:
- Ask for seller credits toward closing costs
- Negotiate repairs after inspections
- Consider homes that have been sitting longer than average
However, in hot submarkets, bidding wars still happen. Your agent will help you tailor your offer based on the specific property and local dynamics.
5. Think Long-Term
If you’re planning to stay in your San Diego home for 5 or more years, short-term market fluctuations matter less. Focus on:
- Buying a home that meets your long-term lifestyle goals
- Building equity through home improvements
- Refinancing later if interest rates drop
The Schwarz Real Estate Group can help you evaluate properties not just for today, but for your future.
6. Work With a Hyper-Local Real Estate Team
Navigating a market shift requires more than Zillow stats. You need boots-on-the-ground expertise. The Schwarz Real Estate Group brings:
- Decades of experience in San Diego real estate
- Deep neighborhood knowledge across North County and coastal markets
- Trusted vendor connections for inspections, lending, and renovations
We’ll guide you from strategy to closing, adapting as the market does.
Final Thoughts
Buying a home in San Diego during a market shift can feel uncertain, but you don’t have to do it alone. With the right team, flexible expectations, and up-to-date data, you can make a smart investment, even in a changing market.
Let the Schwarz Real Estate Group help you turn uncertainty into opportunity. Reach out today to start your personalized home buying plan