Current Market Conditions
The San Diego housing market is facing challenging conditions with sales near historic lows – June 2025 was the second-lowest sales month in data going back 20 years Market Activity for the Greater San Diego Association of …. Sales volume is down about 7-8% compared to a year prior, with roughly 1,684 single-family homes sold in February 2025 versus 1,824 in February 2024.
Key Market Metrics
Pricing:
- The median sale price of an existing single-family home in San Diego County was $1.040 million in July, up from $1.025 million in June and from $1.020 million in July 2024 Home sales up in San Diego County in July | KPBS Public Media
- The average San Diego house price was $945K last month, down 5.5% since last year All-Transactions House Price Index for San Diego-Chula Vista-Carlsbad, CA (MSA) (ATNHPIUS41740Q) | FRED | St. Louis Fed
- Current median prices show single-family homes at $1,399,000 and condos at $699,000 Existing-Home Sales
Market Activity:
- There are currently 2,024 active listings with homes spending 49-70 days on market Existing-Home Sales
- Price reductions are occurring on 36-44% of listings Existing-Home Sales
- Homes typically sell for about 1% below list price and go pending in around 29 days San Diego Housing Market: House Prices & Trends | Redfin
Interest Rate News
The market remains constrained by limited inventory rather than lack of buyer interest. Fewer transactions don’t necessarily mean lack of buyer interest – rather, there aren’t enough homes available. Experts predict that 30-year fixed rates might settle between 6.0% and 6.5% by the end of 2025, which could bring more buyers back into the market MONTHLY NEW RESIDENTIAL SALES, JULY 2025.
The San Diego market continues to be highly competitive despite the sales volume challenges, driven by the area’s desirable lifestyle and limited housing supply.
Current Rates: For today, Thursday, August 28, 2025, the current average 30-year fixed mortgage interest rate is 6.59% Current Mortgage Rates: Compare Today’s Rates | Bankrate, with refinance rates slightly higher at 6.74%.
Recent Trends: Mortgage rates drifted lower again this week in anticipation of a Fed rate cut next month. At 6.58% for a 30-year loan, they’re at the lowest level of the year Mortgage rates drop to 2025 low. This represents a positive development after rates started the summer at 6.85%.
2025 Outlook: The forecast suggests continued gradual decline. Mortgage rates are now expected to end 2025 and 2026 at 6.3 percent and 6.2 percent, respectively Mortgage Rates Expected to Move Lower in 2025 and 2026 | Fannie Mae, according to Fannie Mae’s latest projections. However, this decline may be slow, and short-term rate increases are possible Mortgage Rates Today, August 22, 2025.
Market Context: Despite current concerns, interest rates are still below historical averages. Dating back to April 1971, the fixed 30-year interest rate averaged around 7.8% Will Interest Rates Go Down in September? | Predictions 2025. The expectation is for rates to potentially drop into the 6.5% range in the coming months, which could help bring more buyers into the market.
The consensus among experts is cautiously optimistic, with most predicting a gradual downward trend through 2025, though rates are unlikely to return to the pandemic-era lows of around 3% anytime soon.
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