Published · By Jeff Brick, 2026 SDMLS President
By Jeff Brick, REALTOR® | 2026 President, San Diego Multiple Listing Service (SDMLS) | 2024–2026 Board of Directors, San Diego Association of REALTORS® (SDAR)
Quick answer: As of summer 2026, about 20–22% of active San Diego County listings carry at least one price reduction, with the typical cut around 4% off the original list price, slightly above the national average of about 19%. Condos and townhomes are under more pressure: roughly 28–35% of San Diego condo and townhome listings from the trailing 90 days have had a price cut, been withdrawn or expired unsold, close to one in three. Nearly 6,500 county sellers pulled their listings between January and June 2026.
If you have been watching San Diego listings on Zillow, Redfin, Compass or Homes.com, you have probably noticed more “price reduced” banners, more homes sitting active for weeks longer than they used to, and more listings that quietly disappear before they ever go pending. You are not imagining it, and the data backs it up. As a San Diego agent since 1999, and now as President of the San Diego MLS, I track these shifts closely for my clients and for the health of our local market. Here is what the numbers show for houses, condos and townhomes, and why it is happening.
Roughly 1 in 5 San Diego listings has been reduced
Pulling from aggregated MLS data reported through Redfin’s local market updates alongside portal-level trends on Zillow, Compass and Homes.com, about 20–22% of active San Diego County listings are carrying at least one price reduction, with the typical cut running around 4% off the original list price.
Apr–Jun 2026 · Rolling 3 months
Listings carrying a price reduction
At the same time, San Diego Business Journal reporting on countywide MLS data (via Reports on Housing) found that nearly 6,500 San Diego County sellers pulled their listings off the market between January and June 2026, a 7% increase over the same period in 2025 and more than double the number two years earlier. When a seller withdraws rather than keep reducing, it usually means the home was priced for a market that no longer exists, or the seller decided to wait rather than chase the market down.
January–June each year
Listings withdrawn from the market
2023–2025 figures are estimated from the year-over-year growth rates the Business Journal reported; the 2026 figure is the directly reported number.
Condos and townhomes: closer to 1 in 3
San Diego is really two markets right now. Detached single-family homes have largely held their value, with inventory down roughly 12–25% year over year in several 2026 reports, because owners with 3% mortgages from 2020–2021 have little reason to trade up into a 6% rate. Condos and townhomes are telling a different story.
San Diego County · Mid-2026
Condo and townhome snapshot
Attached-home inventory is up roughly 5–6% year over year even as detached inventory shrinks. In dense condo corridors like Downtown San Diego (92101), typical time to sell has stretched to 70–90+ days, and several submarkets, including Downtown, Pacific Beach and parts of Mission Valley, have moved into buyer’s-market territory.
To find out how many condos and townhomes have been reduced, I cross-referenced active and recently listed inventory across Zillow, Redfin, Compass and Homes.com over the trailing 90 days. Local MLS-derived reporting for Downtown puts it at about one in three active condo listings (roughly 33%) with at least one price cut as of mid-2026, and the pattern held in North Park, Bankers Hill, Pacific Beach and Mission Valley: somewhere in the 28–35% range have been cut, withdrawn or expired unsold, noticeably higher than detached homes in the same neighborhoods.
Why are homes sitting longer and getting cut?
1. Mortgage rates are keeping buyers cautious
Thirty-year fixed rates hovered in the low-to-mid 6% range through mid-2026. That is not high by historical standards, but it is high enough relative to San Diego prices that monthly payment math decides most purchases. Every rate dip triggers a visible jump in pending sales, which tells me demand is not gone, it is rate-gated.
2. Inventory has recovered from the 2023 lows
San Diego is still supply-constrained compared to the 10,000–12,000 active listings typical of 2017–2019, but buyers now have more to compare against. Condo sellers in particular are more likely to be relocating, downsizing or investors, groups less tied to an ultra-low legacy rate, so attached inventory has built back to 3–7 months of supply in many ZIP codes.
3. Sellers are still anchored to 2021–2022 pricing
Many reductions are a sign that the first list price came from comps or expectations of the frenzy years. In nearly every case I review, the listings sitting longest were priced 5–10% above where comparable, correctly priced homes were actually closing. When a home does not get an offer in the first two weeks, it loses momentum and a reduction becomes necessary to re-engage buyers who already scrolled past it.
4. Luxury and older condos are doing most of the cutting
Detached homes have held up countywide. The median single-family price was about $953,625 in July 2026 according to the Greater San Diego Association of REALTORS®, and well-priced homes in the $750,000–$1,000,000 range are still selling. Luxury listings above $2 million are taking an average of 152 days to sell, compared to about 101 days for median-priced homes, and that segment is responsible for a large share of the cuts and withdrawals.
San Diego County · 2026
Average days on market by price tier
5. HOA dues and insurance are squeezing condo values
HOA dues have climbed across San Diego condo buildings, driven by insurance premiums, reserve catch-up and California’s SB 326 balcony and elevated-element inspection law, which is forcing older buildings to fund overdue repairs. Buyers now read HOA financials as closely as they look at the unit, and a building with a special assessment on the horizon will sit or get repriced no matter how nice the unit looks.
6. Buyers are better informed
Every buyer has the portals open during a showing. They can see a listing’s full price history, how long it has been active and how it compares to recent sales, so overpricing is noticed immediately.
What this means if you are selling in San Diego
The biggest factor in whether a listing needs a reduction is how it is priced on day one. Homes priced to current comps are still moving in most price bands, often with multiple offers. Homes priced to “test the market” are the ones landing in the reduction bucket or getting pulled after a frustrating few months. Whether you are selling a condo in North Park or a home in La Jolla, here is what is working:
- Price to the current comp set, not last year’s market. Comps from 2022–2023 are actively hurting sellers who anchor to them.
- Get ahead of HOA disclosures. Buyers read reserve studies and SB 326 reports line by line, so have answers ready before they ask.
- Make one early, well-supported adjustment if needed. One well-timed change beats three reactive cuts over 90 days, and buyers use repeated reductions as leverage.
- Prepare before launch. Repairs, staging and photography done before day one keep you out of the reduction bucket. My Approved Vendors list has the inspectors, stagers and contractors I trust.
What this means if you are buying
A home that has gone through one or two reductions is often a sign the seller is motivated and there is room to negotiate on price, repairs or closing terms. Condo buyers have more leverage than they have had in years. It is still worth understanding why a home has not sold before you write an offer, because sometimes it is simply overpriced and sometimes there is a condition, location or HOA issue a reduction alone will not fix.
FAQ
What percentage of San Diego homes have had a price reduction in 2026?
About 20–22% of active San Diego County listings carried at least one price reduction in spring and summer 2026, with a typical cut of about 4%, slightly above the national average of about 19%.
Are San Diego condo prices dropping in 2026?
Countywide condo and townhome medians are roughly flat to slightly down, about −1.5% year over year in several mid-2026 reports, while older, HOA-heavy buildings are seeing steeper effective declines because of rising ownership costs.
What percentage of San Diego condo listings have had a price cut?
Roughly 28–35% of San Diego condo and townhome listings from the trailing 90 days have had a price cut, been withdrawn or expired, close to one in three. Downtown runs about 33%.
How long are homes taking to sell in San Diego?
Condos and townhomes averaged about 40–43 days on market countywide in June 2026, with Downtown at 70–90+ days. Median-priced homes averaged about 101 days and $2 million-plus homes about 152 days in GSAR 2026 data.
Is now a good time to buy a condo in San Diego?
For buyers, inventory and negotiating leverage are the strongest they have been since before the pandemic. The key is checking HOA health, reserves and any planned special assessments, not just the finishes.
Thinking about selling, or wondering whether a “price reduced” listing is a real opportunity? Get in touch and I would be glad to run the numbers for your neighborhood and price point.
Sources: Redfin San Diego County Housing Market Updates (June and July 2026); San Diego Business Journal, “More San Diego Homeowners Taking Properties Off Market” (2026), citing Reports on Housing MLS data; Greater San Diego Association of REALTORS® Local Market Updates, July 2026; Zillow price-cut tracking (late 2025); listing trends observed across Zillow, Compass, Homes.com and Redfin. Figures reflect mid-2026 countywide and City of San Diego aggregates.
