The Problem: A Marketplace of Contradictions
Welcome to San Diego in July 2025. It’s a marketplace that sends mixed signals, leaving both buyers and sellers feeling… uncertain. On one hand, the median sold price for a single-family home hit $1,050,000 in May, a notable increase from the previous year [1]. On the other hand, the number of actual sales has dropped, and inventory is slowly climbing.
What does this mean for you?
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â– Slowing Momentum: Pending sales dropped 8.8% and closed sales dipped 3.6% from May to June 2025.
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â– Rising Inventory: The number of homes for sale increased by 6.2% in the same period, giving buyers more options.
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â– Pricing Pressure: While 40.6% of homes sold above list price, a nearly equal 44.6% sold below it, signaling a balanced, yet tricky, market [1].
And then there’s the elephant in the room—the new NAR settlement rules. These changes have fundamentally altered how real estate agent commissions work, adding a new layer of complexity to every transaction [2]. If you're considering buying a home in San Diego or planning on selling your house, proceeding without a clear strategy is a significant financial risk.
The Story: When the Old Rules No Longer Apply
Meet David and Maria. For months, their evenings followed a familiar pattern (the Normal). They’d put the kids to bed, open their laptops, and scroll through listings, dreaming about a backyard for their dog, Buster. They found a perfect-looking place in North Park, got pre-qualified, and felt ready to jump in.
Then came the Explosion. They called the agent on the sign, excited to see the home. The agent promptly sent over a buyer compensation agreement, explaining that under the new rules effective July 2025, David and Maria would need to sign an agreement outlining how he would be paid—and that his commission might need to come directly from them. They stared at the numbers. On top of their down payment and closing costs for a $950,000 house, they now had to account for a potential 2.2% buyer's agent fee [2]. The excitement vanished, replaced by a wave of confusion and stress.
Their search screeched to a halt. This was their New Normal—feeling priced out not just by the home, but by the process itself. They realized the casual approach that worked for their parents wouldn't work for them. They needed a guide.
The Solution: Your Go-To-Market Playbook for July 2025
The marketplace pulse is shifting, but that doesn't mean you're powerless. It means you need a data-driven playbook. Whether you're buying or selling, here’s how you gain the advantage.
For Sellers: Price and present for a discerning market
With inventory rising and homes taking longer to sell (average days on market just increased by 9.4%), your go-to-market playbook is more critical than ever. Homes that are well-presented and competitively priced are still selling, while others are expiring.
âžœ Action Step 1: Price Ahead of the Market. Don't base your price on what your neighbor’s house sold for six months ago. With forecasts suggesting a potential 1.2% dip in values by July, you need a forward-looking pricing strategy to attract serious buyers immediately [1]. An overpriced home in a market with growing inventory is the kiss of death.
➜ Action Step 2: Understand Commission Negotiation. The average total real estate commission in California hovers around 5.18% [3]. But "average" isn't a rule. Commission has always been negotiable, and in this market, you have leverage. Discuss a flexible commission structure with your agent that aligns with your net profit goals.
Negotiating can feel as awkward as asking a friend to spot you for dinner... for the fifth time. We get it. Having a team like The Cassity Team that handles these conversations daily removes that burden entirely. It’s just part of the service.
For Buyers: Leverage the shift and negotiate everything
If you're a first-time home buyer in San Diego, this market offers a unique opportunity—if you know where to look. The slowdown in sales activity gives you breathing room and negotiating power you didn't have a year ago.
â–¶ Checklist Item 1: Master the Buyer Agreement. As of July 2025, you must sign a compensation agreement before an agent can show you homes [2]. This is a major change. Don't just sign it; understand it. This is your first negotiation. The fee is not set in stone, and a skilled agent can often negotiate to have the seller cover part or all of this cost as a concession.
â–¶ Checklist Item 2: Use the Market Data as Leverage. Are homes in your target neighborhood now sitting for 17 days before going pending? Use that. Is inventory up 6.2%? Use that too. This data strengthens your position when making an offer and requesting repairs or credits.
â–¶ Checklist Item 3: Get Expert Representation. In this new environment, the agent you choose matters more than ever. You need a fierce negotiator who understands the nuances of the new rules and can protect your financial interests. An expert can help you structure an offer that is compelling to the seller without costing you a fortune.
Your Next Move
The San Diego marketplace is complex, but complexity creates opportunity for those who are prepared. Trying to time the market is a fool's errand, but building a strategy based on today's data is just smart. You don't have to navigate these changes alone.
Stop guessing and start strategizing.
Schedule your complimentary strategy call with The Cassity Team today and build a playbook that wins.
