Most San Diego homes lost value this year
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Nearly four out of five San Diego homes lost value in the past year, a significantly higher share than the national average, according to Zillow.
Why it matters: The drop could offer some relief to struggling homebuyers, even as home prices and mortgage rates remain high.
By the numbers: About 78% of homes in the San Diego metro area were worth less in October than they were a year earlier, according to Zillow's analysis.
- That's compared with 53% of homes nationally — the most since 2012.
- Typical home values hovered around $970,000 in San Diego last month, a 4% decrease over the past year, per Zillow. They were valued at just over $910,000 countywide, down 2.5%.
The intrigue: Carlsbad home values shot up 5.4% this year, averaging about $1.4 million in November, and the coastal North County city saw record highs in 2025.
Reality check: Despite the overall value slide of the past year, the median San Diego home had jumped about 88% in value since the property was last sold, per Zillow's data.
- That's one of the highest among major metros.
- Just 4% lost value in that time, which is around 11 years for typical homeowners in San Diego, where people tend to stay in their homes longer than average.
Between the lines: There's also difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Far fewer homes are underwater today compared with in 2019, Zillow chief economist Mischa Fisher says.
Yes, but: More homeowners in San Diego are underwater or facing "negative equity" due to steep price cuts and low down payments, Times of San Diego reports.
The bottom line: "While fluctuations in home values can distress watchful owners, the vast majority are sitting on large equity gains that they can take advantage of when they sell," Fisher tells Axios.

