According to Trulia.com, as of August 1st, 23% of all the homes for sale in San Diego County had experienced a price reduction.    Back in July, only 20% of homes for sale had a price cut.  On average, list prices were reduced by 8%.  While it seem like negative news that San Diego home sellers had to reduce the list prices on their homes, San Diego did better than many other cities when it came to price cuts.  Out of the top 50 cities for the number of homes with price cuts, San Diego was 42nd.  ZipRealty conducted a national survey in 26 major markets which found that over 45% of home listings had at least one price reduction.  

For the further information, check out this article from the San Diego Union Tribune.