If you’re thinking about buying a home in San Diego in 2025, now is a good time to get serious. More homes are sitting on the market. Price drops are more common. And in walkable, in-demand neighborhoods like North Park, South Park, and other metro neighborhoods of San Diego, buyers are finally getting more room to negotiate.
Let’s break down what’s happening, what steps to take, and how to buy smart in today’s market.
2025 Market Snapshot
- 35.5% of homes in San Diego are selling below asking price
- Median listing price: $992,500
- Median sale price: $966,700.
- Homes are sitting on the market an average of 18 days.
- Inventory is up 79% compared to the same period last year.
This isn’t 2021 anymore. You don’t have to waive every contingency there is or rush into an over-asking offer for every single property. This shift gives you more control, especially if you’re prepared.
Step 1: Get Your Finances in Order
Before you start scrolling through listings, get clear on your numbers.
- Check your credit score (aim for 680+).
- Calculate your debt-to-income ratio — stay under 36%.
- Use a mortgage calculator to find your max budget.
- Review down payment options and closing cost estimates.
Lenders still require full documentation, including tax returns, pay stubs, and bank statements. Getting pre-approved now sets you up to move fast when the right home hits the market. Don’t wait until you see a house that you like before you you do this step.
Step 2: Know Your Down Payment Options
Here’s a breakdown of common loans in 2025:
| Loan Type | Minimum Down | Best For |
| Conventional | 20% | Buyers with solid credit and income |
| FHA | 3.5% | First-time or lower credit buyers |
| VA | 0% | Veterans and active service members |
| USDA | 0% | Rural homebuyers (some outskirts qualify) |
In North Park, where homes can easily run $1M+, even 10% down is a big number. Planning early matters.
Closing costs? Budget 2–5% of the home’s price.
Step 3: Work With a Local Real Estate Agent
Buying in North Park, South Park, or the Metro area isn’t like buying in a cookie-cutter suburb. These neighborhoods are street-specific.
Your agent should:
- Know where new ADUs are popping up.
- Understand condo HOAs vs. single-family quirks.
- Guide you through seller behavior in changing market conditions.
Step 4: Start the Home Search
Once you’ve got pre-approval and a solid agent, it’s time to look.
What to watch for:
- North Park: Craftsman homes, updated bungalows, and duplexes. Near Balboa Park and full of walkable spots.
- South Park: Tight inventory, but highly sought-after. Tree-lined, quiet, and close to shops, parks, and schools.
- Metro (University Heights, Normal Heights, Golden Hill): A mix of older homes, condos, and some fixers with upside.
Use sites like Redfin or ask your agent to send MLS alerts.
Step 5: Make Your Offer (And Negotiate Smart)
Gone are the days of skipping inspections or writing love letters. Now, you can:
- Offer below list price (in many cases), though do expect a counter if you do so.
- Ask for repairs, credits, or closing cost help.
- Take time to inspect the home thoroughly.
Still, good homes in great locations (like near Morley Field or Juniper Canyon) are receiving multiple offers, can move quickly, and sell over list price. Be prepared to act when the time feels right.
Step 6: Inspections, Appraisal, and Closing
Once you’re in escrow:
- Schedule a home inspection right away. This is typically done within the first few days.
- Your lender should order an appraisal right away.
- Get a Natural Hazard Disclosure Report (San Diego = wildfire + earthquake zones).
- Review your closing disclosure and finalize the loan.
Closing costs in 2025 still range from 2% to 5%, depending on loan type and service providers.
Is It Smart to Buy a House in San Diego in 2025?
Yes — if you’re prepared.
You don’t need to overpay or rush. You can in some cases:
- Negotiate price and terms.
- Take time to inspect.
- Compare options in multiple neighborhoods.
North Park, South Park, and the Metro area remain in demand for a reason — walkability, character, strong rental potential, and great community feel.
Looking in North Park, South Park, University Heights, or other Metro neighborhoods?
Let’s talk. We specialize in these neighborhoods and know the block-by-block details that matter. Whether you’re a first-time buyer or looking to upgrade, We’ll help you make the right move and buy a house in San Diego this 2025.
Ready to tour homes or have questions? Reach out to the McT Real Estate Group.