San Diego Housing Update: May 21, 2026
George Lorimer at 619-846-1244
Your Home Sold Guaranteed, or I’ll Buy It!*
*Conditions apply. ProWest Properties, DRE# 01146839
Avoid the Messy Middle. This means that your home isn't fully remodeled (within the past 12 months), but you are pricing it the same as that fully remodeled homes.
Buyers are putting your house in the fixer category, but you're priced much higher than the competing fixer homes.
What to do, you have two choices: either 1. fully remodel your home (spend the time and money to get a premium price). Or 2. Reduce your price to better compete with fixer homes.
San Diego is now a split market. Some homes are still getting multiple offers fast. Others are sitting, cutting prices, and giving buyers room to negotiate.
Mortgage Rates Are Back Near 6.5%
Mortgage rates have pushed back up toward 6.5% as financial markets react to the conflict in Iran and global uncertainty. Higher rates are affecting affordability, slowing parts of the San Diego housing market.
But this does not mean the whole market is dead. It means buyers and sellers need to understand which homes are still moving and which homes are getting stuck.
Download San Diego Active Home and Sales Charts
The Opportunity for Buyers
If you are buying a home in San Diego, stale listings and longer market times could create real opportunities. Some sellers are now more willing to negotiate than they were a few months ago.
Buyer Negotiation Opportunities
- Lower purchase price
- Closing cost credits
- Money toward buying down the mortgage rate
- Better inspection and repair terms
- More leverage on homes sitting too long
The key is knowing which homes are overpriced, which sellers may be flexible, and which homes still require competition. Not every listing is negotiable, but the right stale listing can be a strong opportunity.
For Sellers: Buyers Are Still Out There
Sellers should not panic. Buyers are still buying. But buyers today are much more selective. They care about condition, presentation, pricing, photos, flooring, paint, kitchens, baths, lighting, and curb appeal.
The homes selling best right now usually fall into two categories.
1. Fully Fixed-Up Turnkey Homes
These are the homes with modern flooring, fresh paint, updated kitchens and baths, clean landscaping, strong photos, and the right pricing strategy. These homes can still sell for a premium.
2. True Fixer Homes Priced Correctly
A fixer can still sell well if the price makes sense. Buyers will take on work when the value is clear. The problem is when a fixer is priced too close to a remodeled home.
What Is Not Selling Well: The Messy Middle
The hardest homes to sell right now are the “messy middle” homes. These are homes with older remodels, dated finishes, deferred maintenance, or partial updates, but the seller wants a price similar to the fully remodeled homes.
Buyers are not stupid. They compare everything online before they even schedule a showing. If your home needs work, but it is priced like a showcase home, it will sit.
The Seller Decision
Either prepare the home properly so it competes with the best listings, or price it honestly as a home that needs work. Trying to do neither is where sellers lose time and money.
I Can Help Sellers Fix It Up With No Upfront Cost
For qualified sellers, I can help arrange contractors and front the improvement costs so the home can be prepared properly before going on the market. You can pay for the improvements at closing instead of paying out of pocket upfront.
This may include flooring, paint, landscaping, cleaning, lighting, repairs, staging, and other improvements that help the home show better online and in person.
Bottom Line
San Diego buyers still want homes. Sellers can still get strong results. But the market is less forgiving now.
Buyers should look for stale listings where there may be room to negotiate. Sellers should either prepare their home to compete with the best listings or price it correctly for its current condition.
If you want real advice based on over 1,000 San Diego home sales, call or text me directly.
Thinking of Buying or Selling?
Call or text George Lorimer at 619-846-1244
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George Lorimer, ProWest Properties, DRE# 01146839. Your Home Sold Guaranteed or I’ll Buy It!* *Conditions apply. Information deemed reliable but not guaranteed. Market conditions change quickly. Call George Lorimer at 619-846-1244 for advice specific to your home, neighborhood, and situation.