A Post-Holiday Pause: Are San Diego Buyers Tapping the Brakes?

San Diego Housing Market Update – Week Ending September 7, 2025

The first week of data after the Labor Day holiday is in, and it shows the San Diego real estate market is settling into a fall slowdown. The number of new homes going under contract, which is the best way to see what buyers are doing right now, dropped significantly this week.

This slowdown makes sense. Last Monday was Labor Day, and holiday weekends often see a dip in activity as people focus on travel and family instead of house hunting. This local trend also aligns with the national picture, as market analysts have noted that potential homebuyers across the country are highly sensitive to the current economic climate and are watching for clearer signals before making a move. Let's see how this played out in the local numbers.

🏠 DETACHED HOMES – Week Ending September 8, 2025

Data for San Diego County detached homes for the week ending September 8, 2025. Source: SDMLS | Analysis by Matt O'Brien, Realtor.

The market for single-family homes showed a mixed picture this week. Many sellers, who likely waited until after the holiday, put their homes on the market, causing new listings to jump by 28%. However, fewer buyers were ready to make a deal. The number of homes going into contract dropped by 20%. This is a clear sign that buyer demand is softening as we head deeper into the fall season.

🏢 ATTACHED HOMES (Condos/Townhomes) – Week Ending September 8, 2025

Data for San Diego County attached homes for the week ending September 8, 2025. Source: SDMLS | Analysis by Matt O'Brien, Realtor.

The cooldown in the attached market was even more clear. The number of new contracts for condos and townhomes fell by 23%. This part of the market is often the most sensitive to changes in buyer confidence. With inventory still 44% higher than last year, buyers who are still looking have a lot more to choose from than they did in the past.

💡 What This Means for You

🔵 For Buyers

The fall slowdown is here, and that's good news for you. The 20-23% drop in new contracts means less competition for the homes that are on the market. With more homes for sale than last year, your power to negotiate is the best it has been in months.

🟢 For Sellers

It is important to see that the market has shifted. The numbers show that buyer demand is calming down for the fall season. To get your home sold in this new environment, your price and marketing need to be perfect. The buyers who are looking now are serious, but they have more options.

🟠 For Homeowners

Your home's value remains strong. This is not a market crash, but a healthy and normal return to the usual seasons of real estate. A calmer market is often a more stable market.

💰 For Investors

This slowdown is a key signal. As competition goes down, there may be more opportunities to find a good deal from sellers who want to close a sale before the end of the year.

📞 Ready to Make Your Move?

Navigating a shifting market requires a strategy based on what is happening now. If you're ready to take advantage of the fall season, whether you're buying or selling, let's connect and build a plan that works for you.