Gratitude Realty

While San Diego has long been characterized as a strong seller’s market, recent shifts suggest a subtle cooling in demand, pointing toward a more balanced environment for buyers. Several factors are contributing to this changing landscape:

In April 2025, U.S. home sales saw a mixed performance. Existing home sales edged lower, while new home sales experienced a surge. Existing home sales were down 0.5% month-over-month to a seasonally adjusted annual rate of 4.0 million. New home sales, on the other hand, jumped 10.9% to 743,000, the highest since February 2022. 

Seller’s Market Characteristics

Historically, San Diego’s housing market has favored sellers, driven by consistently high demand and limited inventory. This dynamic has often led to competitive bidding situations and rising home prices.

Emerging Market Shifts

Recent trends indicate that the market is beginning to cool. Homes are spending slightly more time on the market, and price growth is moderating, offering a potential opening for buyers.

Rising Inventory Levels

According to Zillow, there has been a noticeable increase in housing inventory across San Diego. This uptick gives buyers more choices and reduces the urgency that previously fueled bidding wars.

Less Competitive Offers

With more properties available, the intense competition that defined the market in recent years is softening. Buyers may now have more room to negotiate and may not need to offer significantly above asking price to secure a home.

Opportunities for Prepared Buyers

Though the market hasn’t fully shifted in favor of buyers, those with solid financial standing—especially those with strong credit and mortgage pre-approvals—may find favorable opportunities as competition eases slightly.

Staying Informed is Key

Given the natural fluctuations in the housing market, both buyers and sellers should stay informed about the latest data and trends to make well-timed decisions.