San Diego Housing Market Trends 2025
San Diego's real estate market continues to make waves in 2025, with significant price appreciation, rising inventory levels, and shifting market dynamics. For the first time in years, buyers may have an advantage as the market leans in their favor. Here’s a breakdown of the latest trends shaping San Diego’s housing market.
Despite economic uncertainties and shifting market conditions, San Diego's home values remain on an upward trajectory. In January 2025, the median sale price reached $1,030,000—an impressive 11.35% increase compared to the $925,000 median price in January 2024. This price appreciation highlights the ongoing demand for homes in this highly desirable location, reinforcing San Diego’s status as a prime real estate investment opportunity.
A notable trend in 2025 is the sharp increase in housing inventory. In January, the number of homes for sale surged to 3,544, marking a staggering 61.30% increase year-over-year. This trend continued into February, with inventory levels climbing to 3,910 homes. This influx of new listings is providing buyers with more options, shifting the market dynamics away from the extreme seller’s market seen in previous years.
With more inventory available, buyers are taking their time before making purchasing decisions. In January 2025, the average time on the market increased to 29 days, up 34.88% from the 21.5 days seen in January 2024. This trend persisted into February, indicating that while demand remains steady, buyers now have the leverage to carefully evaluate their choices instead of rushing into competitive bidding wars.
One of the most significant changes in 2025 is San Diego's transition toward a buyer’s market. A key indicator of this shift is the Months of Supply Inventory (MSI). Historically, California has averaged around three months of MSI, with anything lower indicating a seller’s market and anything higher signaling a buyer’s market.
In January 2025, San Diego's MSI climbed to 3.4 months—a 47.83% increase from December 2024 and a 30.77% year-over-year rise. This suggests that buyers now have more negotiating power than they’ve had in years. If inventory continues to rise, we could see price stabilization or even slight declines in the coming months.
San Diego’s housing market is undergoing a notable transformation in 2025. While home prices are still appreciating, the surge in inventory and longer selling timelines are shifting the market dynamics in favor of buyers. If you’re considering purchasing a home, now may be the time to explore your options as sellers become more open to negotiation. For sellers, strategic pricing and strong marketing efforts will be key to attracting buyers in this evolving landscape.
Stay informed as we continue to track San Diego’s housing market trends throughout the year!
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