San Diego’s housing market is entering a pivotal new phase. After years of favoring sellers, the latest data reveals that buyers are finally gaining ground. With home prices stabilizing, inventory levels soaring, and homes taking longer to sell, May 2025 signals a notable turning point for real estate across the region.
Following a brief decline in April 2025, San Diego home prices bounced back in May with a 2.44% year-over-year increase, reaching a median sale price of $1,050,000. While this growth is modest compared to January’s double-digit surge of 11.35%, it reinforces a key trend—San Diego home values remain resilient and well above pre-pandemic levels. The market may be more volatile than it was in recent years, but long-term appreciation continues to define the landscape.
Perhaps the most significant shift in the market lies in the dramatic increase in available inventory. As of May 2025, San Diego County recorded 5,664 single-family homes for sale—a staggering 66.34% increase compared to the same time last year. Month-over-month inventory also jumped 13.19% from April, signaling that the pace of new listings is accelerating.
What’s driving this flood of inventory? Many homeowners are likely choosing to list now while prices remain high, before any potential softening in the months ahead. This uptick in inventory gives buyers more choices than they’ve had in years and relieves the urgency that once pressured quick decisions and high-stakes bidding wars.
With more listings on the market, buyers now have time to be selective. Homes are sitting longer, with a median of 18 days on market in May 2025—unchanged from April, but a notable 50% increase compared to May 2024. For context, this is still relatively fast by historical standards, but a clear shift from the hyper-competitive conditions of 2021 and 2022.
Earlier this year, January 2025 saw homes lingering for as long as 29 days, a seasonal peak that underscores today’s more measured buyer behavior. With more inventory and fewer bidding wars, buyers can take their time—and often negotiate better deals.
Using the Months of Supply Inventory (MSI) metric, May 2025 officially marked San Diego’s entry into a buyer’s market. MSI rose to 3.4 months, surpassing the 3-month benchmark that separates a balanced market from a buyer-driven one. This shift represents a 41.67% increase year-over-year and a 17.24% jump from the previous month.
This change is particularly meaningful, as San Diego has long been a stronghold for sellers. But with higher inventory, longer market times, and more cautious buyers, negotiating power is finally tilting in favor of those looking to purchase.
For the first time in years, San Diego real estate is starting to favor buyers. While home prices remain high, they’re growing at a more measured pace. Inventory has surged, and homes are taking longer to sell, giving buyers breathing room—and bargaining power.
Whether you're a first-time buyer, a seasoned investor, or someone looking to relocate within the county, this evolving market presents a unique opportunity. If you’ve been waiting for the right moment to re-enter the San Diego market, this may be your chance.
Work with a trusted real estate professional to take full advantage of these changing conditions—and make your next move with confidence.
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