San Diego County Housing Market Sees Shift Toward Balance
San Diego’s real estate market is entering a new chapter in 2025. While home prices continue to rise, the pace has cooled slightly, and a surge in available listings is giving buyers more room to breathe. As conditions shift, both buyers and sellers need to understand what these trends mean for their next move.
San Diego County’s real estate market remains strong as we move through 2025. The region posted another solid month in February, with home prices up 6.12% year-over-year, bringing the median sale price to $1,040,000. While the rate of increase has eased slightly from January’s 11.35% jump, it’s clear that buyer interest remains steady despite market shifts.
This consistent price appreciation reflects San Diego’s long-standing appeal, with lifestyle, climate, and economic opportunities continuing to drive demand—even as more homes come onto the market.
The number of homes for sale across the county has risen sharply. In February 2025, the market offered 3,910 active listings, up a notable 67% from the same time last year. Inventory levels had dipped slightly over winter, following a 2024 high of 4,650 homes in October. However, listings are picking up again, with an 11% month-over-month increase from January, signaling a busy spring ahead.
More inventory means less competition for buyers and more time to make informed decisions. This shift also puts pressure on sellers to price their homes competitively to attract attention.
As buyer options expand, homes are spending a bit more time on the market. The median number of days to sell in February was 16, which is a 23% increase over the previous year. That said, it’s a significant improvement from January 2025’s 29-day average, showing that well-priced homes are still moving relatively quickly.
This pattern suggests that while the frenzy of past years is calming, homes are not sitting idle if they’re priced right and marketed effectively.
Perhaps the biggest development is San Diego County’s move toward a balanced market. With a Months of Supply Inventory (MSI) of 3.4 in February, the county has officially entered buyer’s market territory—a dramatic shift from previous years. This MSI marks a 47.83% rise from February 2024, when it stood at 2.3.
In practical terms, this means buyers now have greater negotiating power, and sellers can no longer count on instant offers or waived contingencies. The market is normalizing, creating a healthier environment for both sides of the transaction.
San Diego’s housing market is evolving in 2025. Prices continue to rise, but inventory is growing and homes are sitting a bit longer—signs of a maturing market. With MSI data indicating a shift toward a buyer’s market, opportunities are increasing for those who’ve been waiting on the sidelines.
If you’re planning to buy or sell in San Diego this year, understanding these trends can help you act strategically. Reach out to a local real estate professional to navigate today’s changing landscape with confidence.
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