50% of Homes Are Selling Below Asking—Here’s How San Diego Sellers Can Stay Ahead

Property: 11954 Cypress Valley Drive, San Diego, CA 92131 | Offered by Pascale Mercier

The housing market has been making headlines lately, and one stat in particular has people talking: about half of homes are selling for less than their asking price. If you’re a seller, that number can feel intimidating—but it doesn’t have to be bad news.

Our local market is shifting back toward balance after years of bidding wars and sky-high offers. That means strategy matters more than ever, and the good news is: San Diego homeowners who know how to play it smart are still closing deals at (and even above) asking. Let’s break it down.

From Frenzy to “Normal”

Right now, about 50% of homes are selling under asking price, according to the latest data from Cotality. While that might sound concerning, it’s actually more of a “back-to-normal” reset.

Here’s the quick history lesson:

• 2018–2019: About 50–55% of homes sold under asking. That was standard.
  
  

• 2021–2022: With record-low mortgage rates and intense demand, only about 25% sold under asking. Sellers had the upper hand.
  
  

• 2025: We’re back to roughly 50%—right in line with what’s historically typical.

So while the frenzy has cooled, this is not a weak market. It’s just a more balanced one.

Why This Matters If You’re Selling Your House

Pricing has always mattered, but in today’s San Diego market, it’s everything.

A few years ago, you could overshoot your asking price and still attract multiple offers. Today, buyers are careful. They’re navigating higher interest rates, more options, and stricter budgets. That means your pricing strategy has to be spot-on from the start.

Your first two weeks on the market are critical. That’s when the most serious buyers are watching—and if your home is priced too high, you risk losing their attention. Once a listing goes stale, it’s tough to recover without price cuts.

The upside? About half of homes are still selling at or above asking. And those sellers are the ones who priced right and understood the market from day one.

Tips for Properly Pricing Your Home

Want your home to land in the “sold at asking” category? Here’s how:

1. Get a Comparative Market Analysis (CMA).
   Online estimates can’t capture the nuances of San Diego neighborhoods or the upgrades you’ve made. A CMA from a local realtor (like us!) provides the most accurate picture of what your home is worth right now. An agent at San Diego Castles Realty can prepare a personalized CMA to help you price confidently.
   
   

2. Don’t overprice “just to test it.”
   Starting high may seem safe, but it usually backfires. A competitive price will attract serious buyers faster.
   
   

3. Consider buyer psychology.
   A fair price makes buyers feel like they’re getting value, which encourages stronger offers.
   
   

4. Factor in market conditions.
   From interest rates to local inventory, outside forces matter. What worked in 2022 doesn’t necessarily work now.
   
   

5. Be flexible.
   Sometimes, bigger shifts—like changes in mortgage rates or the broader economy—will impact demand. Sellers who adapt stay ahead.
   
   

San Diego’s market isn’t cooling—it’s normalizing. And in a normal market, strategy separates sellers who struggle from sellers who succeed. The difference between getting stuck with price cuts or walking away with your asking price often comes down to one thing: how you set your price from the start.

If you’re considering selling, skip the guesswork. San Diego Castles Realty agents can create a custom CMA and build a pricing strategy that’s tailored to your neighborhood, your home, and today’s market conditions.

Let’s make sure your home stands out—and sells for what it deserves. Reach out today to get started!