San Diego Housing Market Update: Prices Rising, Inventory Growing
San Diego’s real estate market continues to shift as we enter 2025. While home prices are climbing, inventory levels are increasing significantly, giving buyers more options. However, the market remains in favor of sellers due to limited supply. Let’s break down the latest trends in San Diego’s housing market.
San Diego started the year strong with notable price appreciation. While growth slowed during mid-year, the final quarter saw a resurgence. In December, the median sale price surged to $975,000, marking a 6.97% year-over-year increase. This rise highlights strong demand despite economic uncertainties.
Southern California is experiencing a wave of new inventory, and San Diego is no exception. In January, active listings increased by 44.54% year-over-year, offering buyers a wider selection of homes. This influx of listings is giving buyers more negotiating power, making them more selective when making offers.
With more options available, buyers are becoming more cautious, leading to longer days on the market. The median time for a home to sell in San Diego has increased to 51 days, a staggering 137.21% jump year-over-year. Although this number is slightly down from December’s 55-day average, it still indicates a slower-paced market compared to previous years.
Despite the increase in inventory and longer selling times, San Diego is still classified as a sellers’ market. This is measured using the Months of Supply Inventory (MSI) metric. Historically, California’s balanced market hovers around three months of MSI. Currently, San Diego has 2.3 months of supply, keeping it in the sellers’ market category.
However, with rising inventory and shifting buyer behavior, there’s a chance that San Diego could move toward a more balanced or even a buyers’ market in the coming months. Buyers should monitor market conditions closely, as more inventory and longer listing times could provide better opportunities.
San Diego’s real estate market remains dynamic, with rising prices, increasing inventory, and shifting buyer behavior. While it’s still a sellers’ market, longer listing times and the surge in new inventory suggest potential changes ahead. Whether you’re looking to buy or sell, staying informed is key to making the right move.
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