The Current Real Estate Market in San Diego: Local Shifts vs. National Trends in August 2025

As a Realtor serving the vibrant San Diego area, I’m always keeping a close eye on market dynamics to help my clients make informed decisions. With summer winding down and the fall buying season approaching, it's a great time to dive into the current state of the San Diego real estate market. In this article, we'll explore how things have shifted locally over the past year, compare it to what's happening nationally (as often highlighted in the news), and provide some actionable insights for buyers and sellers. Whether you're considering a move to one of our sunny neighborhoods like La Jolla, Pacific Beach, or East County, understanding these trends can give you a competitive edge.

Understanding the San Diego Real Estate Market in 2025

San Diego's housing market has long been known for its resilience, driven by strong demand from tech professionals, military families, and retirees drawn to our coastal lifestyle, world-class beaches, and year-round mild weather. However, 2025 has brought some notable shifts, signaling a move toward a more balanced market after years of intense competition and rapid price growth.

Key Statistics and Trends

• Home Prices: As of July 2025 (the most recent comprehensive data available), the average sold price for a home in San Diego was $940,000, down 5.9% year-over-year from July 2024. Median list prices are hovering around $1,399,000 for single-family homes, reflecting a market where listings may start high but often see reductions—36-44% of listings have price cuts. This cooling is a shift from the double-digit gains in prior years, influenced by higher interest rates and affordability challenges.
• Inventory Levels: Inventory continues to rise, providing more options for buyers. Active listings are up, contributing to a more buyer-friendly environment, though specific months of supply data points to around 2-3 months in many areas.
• Days on Market and Sales Volume: Homes are taking longer to sell, with averages ranging from 17 to 49-70 days depending on the segment, compared to quicker turnarounds last year. Sales volume has been mixed, with some areas seeing increased buyer activity in July but overall moderation.

How the Market Has Shifted

The San Diego market has transitioned from a strong seller's market to one that's more neutral or even leaning toward buyers in some neighborhoods. Previously, low inventory and low rates led to bidding wars and escalating prices. Now, with mortgage rates in the mid-6% range and economic uncertainty, buyers are more selective, negotiating harder, and expecting concessions. Local factors like job growth in biotech and defense, along with upcoming infrastructure like transit expansions, support long-term stability, but the immediate trend is toward steadier, less volatile conditions.

Forecasts indicate modest price growth of 3-4% into 2026, with potential stabilization as rates potentially ease later in 2025.

National Real Estate Trends: What You're Seeing in the News

Nationally, the housing market has been making headlines for its cooling pace, with reports of increasing inventory, persistent high rates, and regional price variations. While not in a downturn, the market is adjusting from the post-pandemic boom. Here's a snapshot based on recent data:

Key National Statistics and Trends

• Home Prices: The median existing-home sale price was $435,300 in June 2025, with quarterly data showing $410,800 for Q2 2025. Prices are declining in some regions (down in parts of the South and West) while rising modestly elsewhere, with an overall forecasted decline of about 3.2% for 2025.
• Inventory Levels: Active listings have surpassed 1.1 million, up 25% year-over-year, approaching pre-pandemic levels in 12 states. Months of supply stood at 4.7 in June, indicating a shift toward balance.
• Days on Market and Sales Volume: Existing-home sales were 3.93 million in June, with projections for modest increases but overall lower activity. Homes are lingering longer, with buyers gaining leverage.
• Mortgage Rates: Rates are stable but elevated, with 30-year fixed at around 6.63%-6.7% as of early August. Forecasts suggest a slight dip later in 2025 if the Fed acts.

The national story emphasizes affordability hurdles, with inventory growth offering relief but no crash in sight—demand persists amid regional differences.

Comparing San Diego to the National Picture

San Diego aligns with national cooling trends, such as rising inventory and longer days on market, but experiences sharper price adjustments—down 5.9% locally versus a national forecast of -3.2%. Our median prices remain over double the national average, making the market more vulnerable to rate changes. Like the West region nationally, San Diego sees inventory booms and price softening, but its strong local economy buffers against deeper declines compared to some Southern markets. Overall, both areas are moving buyer-friendly, though San Diego's luxury and coastal segments hold steadier due to unique demand.

What This Means for You: Advice for Buyers and Sellers

For buyers in San Diego, this balanced market offers opportunities—with more inventory and price reductions, you can negotiate better terms. As rates may ease, acting soon could secure deals before competition ramps up. Get pre-approved to strengthen your position.

For sellers, now more than ever, it's crucial to hire a Realtor with a solid plan and strategy. You simply cannot list your home at or above market price and expect it to sell fast; with increased inventory and discerning buyers, overpricing often leads to extended days on market and necessary reductions. However, homes can still move quickly with the right approach. For instance, my Maximum Bid Home Sale System leverages competitive bidding to attract serious offers and achieve top dollar in as little as 14 days. This strategy involves targeted marketing, strategic pricing to encourage bids, and a structured process that maximizes exposure and urgency, turning potential stagnation into swift, successful sales. For more information, visit https://14dayhomesale.homes/. Pricing realistically, offering incentives, and professional staging remain key to standing out.

If you're ready to navigate these changes, I'm here to help with personalized guidance tailored to your goals. Contact me today for a free market analysis or to discuss your next move in beautiful San Diego!

Disclaimer: Market data is based on the latest available reports and can fluctuate. Always consult a professional for the most current insights.