Home prices continue to drop from last year in San Diego County, except for one coastal city, where home values hit a record high.

SAN DIEGO COUNTY, Calif. — Home prices in San Diego County continue to drop from last year, according to a new report from housing and rental app Zillow. 

The average cost of homes in San Diego County cities and communities fell by 3% from September 2024 to September 2025.

And while home values dipped in all but six cities, one North County city’s home values hit a record high.

Carlsbad had the highest increase in the state and in San Diego County, with average home prices reaching nearly $1.24 million last month, compared to nearly $1.19 million in September 2024—a 4% increase.

Rancho Santa Fe saw the second-highest increase with an average home valued at $4.27 million in September 2025, a nearly $30,000 increase from the same time last year.

Other cities and communities that saw slight increases or remained level include Bonsall (1% increase), Alpine, Fallbrook, and Encinitas. 

And while homeowners in those communities saw their property values go up, other San Diego County homeowners were not so fortunate.

The rural community of Mount Laguna saw the steepest drop from last year, with typical home values dropping by 13% (-$41,452). Other rural communities that saw decreases in home values include Palomar Mountain (-11%), Borrego Springs, and Boulevard (-8%).

Meanwhile, more urban cities also saw their home values fall.

Imperial Beach experienced the steepest decline among cities in San Diego County, with home values dropping on average by $41,450 from September 2024. 

San Diego homeowners saw their home prices decrease by over $43,405 from last year, representing a 4% drop.

Search the table below to see how home prices fared: