It's Tuesday and whether or not you had a three-day weekend (or a weekend at all), hope you're feeling rested.

☀️Today's weather: Coast — sunny, high 66. Inland — sunny, high 70.

• Coastal flood advisory until 2pm today.

🎧 Sounds like: "High Hopes 3000" by ROLE MODEL

🎂 Happy belated birthday to our members Elissa Keogh and Carole Potter!

Today’s newsletter is 987 words — a 3.5-minute read.

Prices for our so-called "starter homes" are falling, according to the First American Data & Analytics Home Price Index. But it's not all good news.

The big picture: That drop is due to higher mortgage rates impacting lower-budget buyers hardest, experts told Axios.

• At the same time, those in the know say those falling prices signal a fresh opportunity for anyone who can scrape enough together to buy.

By the numbers: Prices for starter homes (homes going for less than $1 million) fell by 1.1% since last August, according to the report.

• Meanwhile, homes between $1 million and $1.496 million saw prices rise by 0.5%.
• Same for homes above $1.496 million.

Caveat: San Diego "starter homes" are still not really feasible for many of us.

• Their media price is $775,000, according to First American.

Friction point: Interest rates, which are bouncing around 7.3%, are the kicker, San Diego Association of Realtors president Karen Van Ness told Axios.

• Even if prices go down, mortgage payments are still high.
• Toss in the higher costs of utilities, maintenance, insurance and HOA fees, and many lower-budget buyers are taking a breath and reconsidering their choices, she said.
• They might wait to buy until interest rates come down or look at condos instead.

State of play: All of this makes for a buyers' market in San Diego for the first time in years.

• That's because there's less demand for these cheaper homes, First American chief economist Mark Fleming told Axios.

The condo market has also suffered, Van Ness said.

• That's in part because of the steep hike in HOA dues — in some places by 60% to 70% since 2021, she said.

The bottom line: "I strongly suggest that if an individual or a couple can afford a home, that they buy it now," Van Ness said. "Regardless of the interest rate, because interest rates change, but once they lock in a price on a home, it doesn't."

More details

If you are following the above advice, now may be the best week of the year to buy a home, per a new Realtor.com report.

Why it matters: Homebuying is a slog and most shoppers will take any advantage they can get.

By the numbers: Listing prices in our region typically fall around 6.5% during this week — through Saturday — from their seasonal peak, per the report.

• Plus: New listings are up 1% at this time compared with the average.
• "Home shoppers heading into fall will find an opportunity that has been hard to come by in recent years: More choices and less urgency," Realtor.com senior economist Hannah Jones said in a press release.

More details

Speaking of buying, here's an option...if you have a few million dollars lying around.

The big picture: A penthouse in downtown's historic El Cortez building is on the market for $2.5 million, with a private terrace and panoramic views of the skyline and bay.

Zoom in: The 2,000-square-foot condo at 702 Ash St. has three bedrooms, three bathrooms and an elevator that opens directly into the residence.

Flashback: El Cortez opened on Thanksgiving in 1927 and was once our tallest building.

• It used to be a hotel rumored to have hosted Elvis Presley and The Beatles.
• It was converted to condos in the early 2000s.

Yes, but: Even if you can afford the steep price, you also need to factor in $1,512 a month in HOA fees.

More details

🌧️ Tropical Storm Rachel soaked the county over the weekend, and high surf hit beachside cottages in Oceanside and flooded Highway 101 near Carlsbad (Union-Tribune)

• In the city, there were a few water rescues and some wires down. (Instagram)

🚲 San Diego's e-bike rules now come with $25 citations after a warning period. The rules bar kids under 12 from operating Class 1 and 2 e-bikes. (CBS 8)

🥾 Mission Trails will get $1 million to replace South Fortuna's unstable wooden staircase with stone steps. The "Stairway to Heaven" draws more than 60,000 hikers a year. (10News)

New businesses. Changing neighborhoods. Decisions that affect your day. Our reporting helps you keep up by finding what matters and explaining it clearly.

📍 Become a member today to support the reporting that makes staying informed easier for you and your neighbors.

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It's a big day for local yearners as both Role Model and Sombr perform concerts at different venues across the city tonight.

Why it matters: The "pop princes" share an overlapping fan base, and concertgoers will have to make a choice between heartthrobs.

• Role Model (also known as Tucker Pillsbury) will appear at SDSU's Cal Coast Credit Union Amphitheater. Sombr will be less than 10 miles away at Pechanga Arena.

Fun fact: Sombr's "Back to Friends" was our top song of the summer in 2025, according to Spotify.

What to expect: Role Model's show should be a little bit retro, a little bit jukebox ballad and a lot of fun.

• He's coming off the release of his August record, "Chuck Timely and the Hourglass," which was met with middling reviews but has a few absolute bangers and is largely pleasant.

💭 Julie's thought bubble: You can catch me at Role Model, ready for my "Love I You" moment and sobbing through "Some Protector" like my life depends on it.

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😌 Claire is feeling much more rested.

👩🏻‍🍼 Kate is on parental leave.

This newsletter was edited by Geoff Ziezulewicz.