San Diego median home prices reached $900,000 in May 2025 — and buying home in San Diego has never demanded smarter strategy. Jason Cassity - The Cassity Team specializes in navigating this marketplace pulse through strategic negotiations and our 28,000+ agent network at Real brokerage.
The question every client asks? "Should I wait this out or move now?"
Here's the data-driven answer: The first balanced market conditions in three years create distinct advantages — but only for those who understand the new rules.
"San Diego's balanced market rewards strategic players — timing windows closing fast."
The Problem: Everyone's Playing Yesterday's Game
The Greater San Diego Association of REALTORS® (SDAR) reports the overall median sales price for residential properties in San Diego County reached $900,000 in May 2025, marking a 2.9% increase over the previous month [1].
Yet most agents operate like it's still 2022. That's costly thinking — and I'll admit, we used to make similar assumptions until the data forced us to evolve.
Normal ➜ Explosion ➜ New Normal
Normal (Pre-2020): Properties sat 30-45 days on market with buyer negotiation power.
Explosion (2020-2023): Sellers commanded premium pricing with limited inventory.
New Normal (2025): Home sales fell in San Diego County in June, while rising statewide after three straight months of decline [2] according to the California Association of Realtors.
Current San Diego Market Intelligence (SDAR Data)
Buying Home in San Diego: The Numbers
â– Median Home Price: $1.05 million for existing single-family homes in San Diego County [3] (CAR, June 2025)
â– Market Shift: "With more properties on the market and price growth flattening, conditions have become more favorable for prospective buyers," said CAR President Heather Ozur [2]
â– Sales Pace: California totaled 254,190 seasonally adjusted annualized rate in May, down 5.1% from April and 4.0% year-over-year [3]
â– Inventory Advantage: San Diego housing market continued shifting in June 2025, with closed sales declining while new listings climbed — buyers remain measured as they navigate more options [4] (SDAR)
This creates the perfect storm for first time home buyer San Diego opportunities we haven't seen since 2019.
Selling House in San Diego: Strategic Positioning
â– Pricing Reality: May's sales level statewide was lowest in four months, with year-over-year decline largest since December 2023 [3]
â– Timeline Expectations: Average 76 days total (41 days on market + 35 days to close) [5]
â– Opportunity Window: "While sales could remain soft at the start of the third quarter, recent improvements in housing sentiment suggest the market could see bounce-back in second half of year" [2] (CAR)
San Diego Realtor Commission Rates: The Reality
Here's where I see most clients leave thousands on the table — myself included when I started in this business.
Commission Structure (Official Data)
California's average real estate commission is 5.05% of the home's sale price in realtor fees [6] based on April 2025 survey of local agents.
â– Standard Rate: 5% to 6% for residential listings in San Diego [7] â– Buyer Agent Split: Many listings allocate 2.5% for the buy side [7] â– Negotiation Gap: Only 22% of sellers actually discuss commission rates and successfully negotiate lower fees [8]
Cost Impact on $1.05M San Diego Home:
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Standard 5.05% = $53,025 in total fees
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Negotiated 4% = $42,000 in total fees
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Your savings: $11,025
Real Estate Agent Commission Negotiation San Diego: Proven Framework
Understanding San Diego realtor commission rates creates leverage when you know how to apply it strategically.
High-Leverage Scenarios: âžœ Multiple Properties: Agent representing both sale and subsequent purchase will likely cut their fee [9] — especially effective in San Diego's move-up market
➜ High-Value Properties: Agents more open to negotiation on sought-after areas or highly valued homes, especially $2M+ because commission will be so high [10]
➜ Market Timing: During slower periods, agents may be more open to negotiating fees to secure available listings [11]
âžœ Volume Opportunity: "Volume helps" — if you can help agent close more than one property, they may bring down their rate [10]
Commission Negotiation Script Framework:
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Anchor with data: "SDAR reports commission averaging 5.05% statewide..."
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Present value exchange: Referrals, multiple properties, or premium location
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Request specific rate: "Given our situation, 4% total commission works for both parties"
Visit our commission strategy consultation — we negotiate based on value delivered, not industry standards.
The Story: Commission Negotiation Success
Maria Rodriguez owned a $1.1M updated home in Carlsbad. Three agents quoted standard rates totaling $55,550 in fees.
Normal: Maria assumed 5.05% was non-negotiable industry standard.
Explosion: After researching SDAR data showing balanced conditions, she realized this created negotiation opportunity. The emotional turning point? Discovering she'd been leaving money on the table for decades without even asking.
New Normal: Maria approached The Cassity Team with strategic positioning:
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Used official SDAR market intelligence showing increased inventory
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Offered two confirmed neighbor referrals from her HOA board connections
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Highlighted property's move-in ready condition requiring minimal staging investment
Result: Secured 4.25% total rate Timeline: 28 days with multiple offers
Her savings: $8,800 vs. standard rate
The key insight? Commission negotiation works when positioned as value-based partnership rather than price haggling.
First Time Home Buyer San Diego: Your Advantage Window
Current conditions create the best first time home buyer San Diego opportunities since 2019 — though I wish I'd had these programs when I bought my first place.
Current Market Benefits: â– SDHC programs offer up to 19% of purchase price in down payment assistance [12] â– Up to 17% down payment assistance PLUS up to 4% closing costs in San Diego County areas [13] â– Dream For All program provides vouchers offering up to 20% of home's value for down payment and closing cost assistance [14]
Strategic Timing Advantage: Conditions have become more favorable for prospective buyers who have been waiting on sidelines to re-enter market [2] — CAR President Heather Ozur
Access Programs Through The Cassity Team: ➜ First-Time Homebuyer Program Navigation ➜ SDHC application assistance for qualifying buyers
➜ CalHFA program coordination and timeline management
First time home buyer San Diego clients working with our team access programs most agents don't even know exist.
ROI Analysis: Market Performance Data
Investment Metrics (Official Sources)
Future Performance Projections: â– NAR expects 6% rise in home sales 2025, 11% jump in 2026 [15] â– Median home prices forecasted to rise 3% in 2025, 4% in 2026 [15] â– Mortgage rates expected to average 6.4% second half 2025, potentially drop to 6.1% in 2026 [15]
Commission Impact on ROI:
Example: $1.05M Sale Optimization
Traditional approach:
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Sale price: $1,050,000
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Commission (5.05%): -$53,025
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Net proceeds: $996,975
Negotiated approach:
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Sale price: $1,050,000
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Commission (4.25%): -$44,625
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Additional ROI: $8,400
On a $1M+ transaction, smart commission strategy = $8,400 more capital for your next investment.
Your Go-to-Market Action Plan
For Selling House in San Diego
Market Intelligence Strategy: CAR President: "With home prices leveling off and more homes coming onto market, it's great time for well-qualified buyers to enter market" [3] — this creates strategic positioning opportunity for sellers.
➜ Use our pricing strategy consultation with live SDAR data ➜ Implement commission negotiation framework before listing ➜ Optimize timing with $999,995 median July pricing advantage
For First Time Home Buyer San Diego
Market Entry Strategy: ➜ Leverage increased inventory for enhanced negotiation power ➜ Access down payment assistance programs through our buyer services
➜ Work with agents who understand current financing landscape
Urgency Factor: Program funding gets allocated on first-come basis — qualified buyers should move within 30 days.
The Cassity Team Advantage: Strategic Market Intelligence
We operate differently because we use official SDAR and CAR data rather than third-party estimates — though I'll confess we used to rely on delayed reports like everyone else.
Strategic Intelligence: â– Data compilation by Greater San Diego Association of REALTORS® (SDAR) through San Diego Multiple Listing Service (SDMLS) [4] â– 28,000+ agent Real brokerage network for off-market opportunities â– Commission transparency based on value delivered, not industry standards
Market Access Through Our Platform: ➜ Real-time SDAR market reports delivered weekly ➜ Pre-market property notifications 48 hours before public listing ➜ Strategic consultation for buyers and sellers
Social Proof: International buyer transactions surged 44% year-over-year with $56 billion total volume, marking 33% increase [16] (NAR) — we position our clients to capitalize on this global demand.
Ready to stop playing yesterday's game?
Take Action Now: The balanced market window won't last through fall. Market improvements suggest bounce-back in second half of year [2], which means current buyer advantages disappear.
Your strategic consultation: Contact Jason Cassity - The Cassity Team at thecassityteam.com for comprehensive market analysis using official SDAR data.
Whether buying your first San Diego home or positioning for strategic sale, current balanced conditions create time-sensitive opportunities — but timing windows narrow with each passing week.
The marketplace pulse waits for no one. Your move starts now.
Data sources: Greater San Diego Association of REALTORS® (SDAR), California Association of Realtors (CAR), San Diego Multiple Listing Service (SDMLS). Market intelligence compiled from official industry sources only.
