Is Now a Good Time to Buy a Home in San Diego? What Today’s Rates Really Mean for Affordability

Unsure whether to buy a home in San Diego right now? Here’s what today’s mortgage rates, supply, and buyer demand really mean for affordability in 2025.
If you’ve been asking yourself, “Should I wait?” — you’re not alone. With shifting mortgage rates and constant headlines, many future buyers are stuck in wait-and-see mode. It’s understandable — buying a home in San Diego is a major decision, and you want to time it well.
But here’s the key truth:
The best time to buy isn’t about rates alone — it’s about affordability and opportunity.
So let’s break down what’s happening right now in San Diego… and what it means for you.
📉 Mortgage Rates Have Dropped from Recent Highs

Not long ago, buyers were facing rates around 7.5–8%.
Today, we’re seeing a softer rate environment — and that shift translates directly into savings.
Example:
On a $1M purchase in San Diego…

• At 7.5% interest → Monthly payment could be around $6,500
• At 6.5% interest → Monthly payment becomes ~$5,900

👉 That’s nearly $600/month — or over $7,000 per year — saved just from the rate change.
Even a 1% drop creates significant buying power in a high-price market like San Diego.

📊 More Inventory = More Choices (and less competition)
For the first time in a while:

• There are more homes on the market
• Buyers have more time to make decisions
• Multiple-offer bidding wars are not the norm at every price point

This gives you:
✔ Negotiation power
✔ Ability to include contingencies again
✔ Less pressure to rush a decision

Waiting may mean missing this window of balance before competition ramps up again.
San Diego Home Values Remain Strong — and Rising

Here’s what decades of data have shown:

San Diego is one of the most resilient housing markets in the country.

Why?
Limited land for new construction

Coastal lifestyle demand

Major biotech + tech employers

International second-home interest

Year-round outdoor living (sunshine sells!)

Even when the market slows temporarily, San Diego home prices trend upward long-term. Meaning:
Waiting often costs buyers more than buying
🔍 Price Adjustments = Buyer Leverage

Some sellers who listed too high in the summer market are now adjusting their expectations. That means:

Flexibility on repairs and upgrades

Room for negotiation

Closing cost credits possible again
Situations like these are opportunities for smart buyers — especially with a strong agent guiding you.

⚖️ Renting vs Buying in San Diego: Look at the Math

Rents continue rising across nearly all neighborhoods.

Buying allows you to:

✔ Lock in your monthly payment
✔ Build equity instead of paying someone else’s mortgage
✔ Benefit from appreciation
✔ Gain stability and ownership pride

If you’re renting for $4,500/month…
That’s $54,000 per year with $0 return.

Owning converts that into equity and wealth.

🎯 What Really Matters: Your Personal Timeline & Comfort Zone

Here’s how to know if you’re financially ready:

• You have a stable income
• You plan to stay in San Diego 3–5 years or more
• You’re approved with a lender before shopping
• You can comfortably afford a home you love

If those align — then yes, it’s a good time for you.
Your lifestyle shouldn’t wait on headlines.

Expert Tip: Marry the House, Date the Rate

If rates drop later, refinancing is always an option.
But…

If prices rise later, you can’t refinance the purchase price.

Buy the home you love now → Improve your rate later.

📌 Bottom Line

There is no perfect market.

But right now in San Diego, buyers have a rare combination of:

✨ Lower mortgage rates
✨ More inventory
✨ Better negotiation power
✨ Stable and growing long-term value

That makes this one of the best opportunities we’ve seen in years for buyers who are ready.

Ready to explore your options with confidence?

I help buyers:

• Match budget with the right neighborhoods
• Estimate payments across multiple rate scenarios
• Spot strong opportunities others overlook
• Navigate negotiations with ease

Whether you’re ready now or planning ahead — let’s talk about the best strategy for you.