San Diego Real Estate Scene: Insights and Predictions for 2025-2026
In the San Diego housing market, a noticeable shift is underway, with signs of a cooling market, declining prices, increasing inventory, and longer times to sell. This contrasts with a more moderate statewide trend in California.
According to the latest reports, the median price for a single-family home in San Diego County dropped by 2.4% from May to June 2025, reaching $1,025,000. The Unsold Inventory Index (UII) in San Diego also increased from 2.7 months in June 2024 to 3.6 months in June 2025.
The San Diego housing market is experiencing a gentle correction, with a more significant price decline and inventory growth compared to the California overall. In San Diego’s North County, the median price for detached homes dropped by 5.3% year-over-year to $1,165,000, with inventory up 15% and average days on market increasing by over 40% to 31 days.
Statewide, California is experiencing a slower housing market in 2025 but with less steep price drops. The statewide median home price in June 2025 was about $899,560, slightly down from previous months and the prior year. Home sales statewide rebounded modestly (+4% from May), while San Diego saw a slight sales decline (-3.9% from May, +0.7% year over year).
The broader California market is undergoing a significant correction in 2025, marked by skyrocketing inventory and month-over-month home value drops. This is driven by dramatically reduced buyer demand, with home sales down 20% from normal levels and 40% from pandemic peaks. Major metro areas including San Diego reflect these trends.
Key comparative points between San Diego and California overall are as follows:
| Metric | San Diego (June 2025) | California Overall (June 2025) | |--------------------------|-----------------------------------------------|------------------------------------------------| | Median Home Price | Detached: $1,165,000 (-5.3% YoY) | $899,560 (slight decline YoY) | | Inventory Change | +15% (detached homes) | Inventory up ~28.9% YoY nationally | | Days on Market | ~31-32 days (+40% YoY) | Homes taking ~5 days longer to sell nationally | | Sales Volume | Down 3.9% MoM, +0.7% YoY | Up 4% MoM, down 0.3% YoY | | Market Status | Cooling, more negotiating power for buyers | Market rebalancing with increasing delistings |
Experts predict a slight dip in home values in the San Diego housing market in the coming months, but a "crash" is unlikely. The current 30-year fixed mortgage rate is around 6.74%, significantly higher than rates seen a couple of years ago. Homes in San Diego are selling in around 19 days on average.
It's worth noting that renter-occupied households make up 53% of the housing units in San Diego, with the median rent for an apartment in San Diego being $2,499, and houses for rent having an average monthly cost of $4,150.
San Diego is inching closer to a balanced market, with buyers having more options and sellers needing to be more flexible on price. This nuanced difference suggests San Diego is part of the broader state trend but experiencing it with greater intensity, likely due to its traditionally higher prices and recent market dynamics.
[1] San Diego Union-Tribune
[2] California Association of Realtors
[3] Zillow
- The San Diego housing market's cooling trend, evidenced by declining home prices, increasing inventory, and longer selling times, is covered extensively in the San Diego Union-Tribune.
- The median home price in San Diego County dropped by 2.4% from May to June 2025, reaching $1,025,000, according to data from the California Association of Realtors and Zillow.
- In contrast, the broader California market is experiencing a significant correction, with skyrocketing inventory and month-over-month home value drops, as reported by the California Association of Realtors and Zillow.
- The increase in inventory and the slowing home sales in San Diego suggest that the city is inching closer to a balanced market, a trend that could be beneficial for investors seeking opportunities in the real estate market.
- With renter-occupied households making up 53% of the housing units in San Diego, the median rent for an apartment in San Diego is $2,499, and houses for rent have an average monthly cost of $4,150, making rental investment potentially attractive in this market.
- Financial analysts believe that although there may be a slight dip in home values in the San Diego housing market over the next few months, a major "crash" is unlikely, given the current 30-year fixed mortgage rate of around 6.74%.
