‘Stark reversal from the pandemic boom’: San Diego home prices down for 5th month

San Diego home prices were down for a fifth month in October, but the pace of the decline has slowed.

The San Diego metropolitan area’s home price decreased 0.59% annually in October, said the S&P Cotality Case-Shiller Indices report released Tuesday. That’s lower than the 0.85% drop in September. The region was No. 12 in the October 19-city index (Detroit was missing again in this report because of local recording issues).

October marked a slight rise for San Diego in the rankings, with its highest showing since February. That was mainly a function of a very moderate rise in prices and other regions slowing at a faster pace. National home prices rose 1.4%, up from 1.3% the previous month.

Lisa Sturtevant, chief economist at Bright MLS, said lower mortgage rates in October likely helped a sluggish real estate market — which might also be a factor next year.

“Affordability should continue to improve in 2026 through a combination of lower mortgage rates and slower price growth,” she said, “and even price drops in some metro areas. But we should not expect significant gains in affordability in the year ahead.”

Sturtevant noted a lot of variation among markets in this month’s report, with Midwest and East Coast cities seeing gains. Chicago was at the top with an annual gain of 5.83%. It was followed by New York at 4.95%, Cleveland at 4.06% and Boston at 2.92%.

There were nine metro areas that were down annually and all were in the Western U.S. or Florida — the opposite of the pandemic homebuying rush. Tampa was down the most at 4.17%, followed by Phoenix, down 1.54%, and Dallas, down 1.48%.

“These traditionally stable Midwestern and Northeastern metros have sustained solid growth even as broader conditions soften,” said Nicholas Godec of the S&P Dow Jones Indices. “It’s a stark reversal from the pandemic boom, as the markets that were once ‘pandemic darlings’ are now seeing the sharpest corrections while more traditional metros continue to post modest gains.”

The Case-Shiller index tracks repeat sales of identical single-family houses — and is seasonally adjusted — as they turn over through the years. It is often seen as a bellwether of the economy as a whole.

San Diego County’s median home price for single-family homes in October was $985,000, said Attom Data Solutions. The median is the point at which half the homes sold for more and half for less.

The average 30-year, fixed-rate mortgage rate was 6.17% in the last week of October, said Freddie Mac, which was the lowest point of the year. That was down from a high of 7.04% in January.

Lower mortgage rates have not led to major uptick in home sales. San Diego County is on track for one of its slowest homebuying years in history, and it isn’t much different for the rest of the nation. Realtor.com said U.S. home sales were on track for a 30-year low.

Joel Berner, a senior economist at Realtor.com, said recent upticks in demand were mostly supported by lower mortgage rates and seasonally favorable conditions — not because homes had suddenly become more affordable.

“Momentum in the housing market is struggling to pick up”, he said, “as affordability constraints and a softening labor market weigh on demand.”

Annual price growth by metropolitan area

S&P/Case-Shiller Home Price Index, October 2025

Chicago: 5.83%New York: 4.95%Cleveland: 4.06%Boston: 2.92%Minneapolis: 2.67%Washington, D.C.: 0.47%Charlotte: 0.40%San Francisco: 0.28%Los Angeles-Anaheim: 0.06%Atlanta: -0.12%Seattle: -0.39%San Diego: -0.59%Portland: -0.62%Las Vegas :-0.67%Miami: -1.05%Denver: -1.33%Dallas: -1.48%Phoenix: -1.54%Tampa: -4.17%Detroit: N/A

Nationwide: 1.4%