Buy Now or Wait? The One Factor That Makes the Biggest Difference in the San Diego Real Estate Market

Thinking about buying a home in San Diego this year?

You’ve probably heard it all: “Wait for rates to drop.” “Home prices are too high.” “Now’s the best time to buy!”

But let’s be real—no one has a crystal ball. If you're trying to figure out if now is the right time to buy in San Diego, there’s one thing you need to ask yourself…

How long do you plan to stay?

When it comes to real estate, time is your biggest asset. Let’s break it down.

The Longer You Stay, The More You Gain

If you’re only planning to live in a home for a year or two, buying might not be the smartest move in San Diego. With closing costs, property taxes, and maintenance, you could end up spending more than you’re gaining. Plus, if you sell in less than two years, you could face capital gains taxes.

But what if you’re staying longer? According to Redfin, the typical U.S. homeowner stays in their home for 11.8 years. In San Diego, if you're staying for that long, home price appreciation could work in your favor.

San Diego’s market has had some of the highest growth rates in the country. Even during downturns like the Great Recession, homeowners who stayed put for 10+ years still saw price increases when they sold. So while short-term market fluctuations happen, history shows that long-term homeowners typically come out ahead.

Looking at the latest numbers, Zillow reports that in February 2025, home values in San Diego have gone up 45.3% since February 2020. That’s the kind of growth you don’t want to miss out on.

Buying vs. Renting in San Diego: What Makes Sense for You?
 

The question isn’t really, “Is now a good time to buy?”—it’s “How long are you staying?”

• Buy if you’re planning to stay for at least 10 years.

• You’ll have time to build equity and ride out the market’s ups and downs.

• San Diego home prices tend to go up in the long run.

• You’ll lock in a mortgage payment instead of worrying about rising rent prices, which are a serious thing here.

• Rent if you might move in the next year or two.

• Selling too soon could mean losing money on transaction costs.

• Renting gives you more flexibility if your plans change.

• In the short term, renting might be a smarter choice financially.

What if you’re planning to stay for five to seven years?

Take a look at local appreciation trends. Certain neighborhoods in San Diego are seeing rapid growth, while others may not see the same return.

Compare your potential mortgage payment to local rent prices. In some areas of San Diego, buying still makes more sense than renting.
Consider buying a place with rental potential. That way, you have options if you need to move.

The Bottom Line

I’ll say it again—trying to time the market is tough. But if you know you’ll be in your next home for 10 years or more—and can afford the monthly payments right now—you’re probably making a smart move.

If you’re not sure what’s the best option for you, let’s chat. We’ll go over your situation and figure out the right path.

Because buying a home isn’t just about what the market’s doing today. It’s about where you see yourself in the future.