The San Diego real estate market is showing signs of shifting toward a potential buyer’s market, as some reports indicate a move away from the current seller’s market. Inventory levels are rising, and buyer demand is decreasing, resulting in more homes sold for less than their asking prices. Although a complete buyer’s market may not have fully developed yet, the overall market is becoming more balanced. Lower interest rates will move the market towards the sellers, making this a rare time in the San Diego housing market.
San Diego’s housing market has seen significant growth in home values in recent years, but that trend may be coming to a halt. As of April 2025, the median sale price of a home in San Diego reached $990,000, a notable increase from $630,000 just five years earlier when the pandemic began, according to Redfin.
Despite the continued rise in median prices, homes are taking longer to sell. In April 2025, the average time a home spent on the market was 21 days, which is six days longer compared to the previous year. Realtor Destiny Roxas pointed out in an interview with NBC 7, “There is a smaller group of buyers actively making transactions, so homes are sitting for longer. Inventory has also increased, which is important to note.”
Interest rates play a significant role in this market. The current rate for a 30-year fixed mortgage is just under 7%, affecting affordability for potential buyers. Market experts indicate that the housing market naturally goes through cycles. Roxas explained, “The entire real estate market is cyclical, which means there will always be ups and downs. Higher interest rates make affordability more challenging for the average American, causing some people to pull back. However, the interest rates we’ve experienced over the last several years are unlikely to return to the levels seen during the pandemic, which means we should expect rates around 6% to 7% to be our new normal.”
As the market continues to change, experts underscore the necessity of thorough research and a strategic approach to both purchasing and selling homes. Roxas concluded, “Ultimately, your home is worth what a buyer is willing to pay for it.”
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