Current Market Overview
The San Diego housing market is transitioning toward a more balanced state after years of being heavily seller-favored. The market shows a mix of increased inventory alongside slightly softer prices compared to last year.
Home Sales Activity
Sales patterns in April 2025 revealed interesting dynamics:
- Month-over-month: 22.5% increase from March to April 2025
- Year-over-year: 9.4% increase compared to April 2024 While the monthly jump appears strong, the more modest yearly growth suggests potential cooling after a very active period.
Pricing Trends
The median home price in San Diego County hit $1,015,000 in April 2025, showing:
- 2.4% decrease from March 2025 ($1,040,000)
- 3.1% decrease from April 2024 ($1,047,500)
This represents a notable shift from the rapid price appreciation of recent years. For context, San Diego’s median price remains significantly above the national median of $403,700 (March 2025), which saw a 2.7% year-over-year increase.
Housing Supply Improvements
The supply situation has shifted meaningfully in buyers’ favor:
- Unsold Inventory Index increased to 2.9 months (up from 2.2 months in April 2024)
- Active listings have grown for 15 consecutive months year-over-year
- Current inventory levels reached a 66-month high
Market Dynamics
Several factors are reshaping the market:
Increased Options: Buyers now have significantly more homes to choose from, reducing the intense competition of previous years.
Extended Market Time: Homes are staying on the market longer – 18 days in April 2025 versus 12 days in April 2024, giving buyers more time to make decisions.
Price Stability: While not experiencing dramatic drops, price growth has moderated considerably, with slight year-over-year decreases.
Negotiation Power: The sales-price-to-list-price ratio remains at 100%, but increasing inventory may provide buyers with more negotiating leverage in coming months.
Market Classification
The market is evolving from a strong seller’s market toward a more balanced environment. While sellers still maintain advantages due to underlying demand, buyers are gaining more decision-making time and potentially more room for negotiation than they’ve had in years.
This shift represents a significant change from the highly competitive, fast-moving market that characterized San Diego real estate in recent years, offering both buyers and sellers a different set of considerations as they navigate current conditions.
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