San Diego Housing Market Update — Spring 2025
Spring 2025 Market Snapshot
After a year of adjustment in 2024, the spring 2025 San Diego housing market is showing signs of renewed activity. Modest rate decreases in late 2024 and early 2025 are bringing sidelined buyers back, while sellers are getting smarter about pricing.
Key Numbers
- Median Home Price: $905,000 (San Diego County)
- Active Listings: Up 12% year-over-year
- Days on Market: 26 days
- Mortgage Rates: 6.3-6.5% for a 30-year fixed
What Changed from 2024
The biggest shift is buyer sentiment. After two years of rate shock, buyers have adapted. The realization that 6% rates are the new normal (not the 3% anomaly of 2021) has brought many back to the market.
Key changes:
- More inventory gives buyers breathing room
- Multiple offers are less common (except on well-priced homes)
- Contingencies are back — buyers are negotiating inspections and repairs again
- Price cuts are more common, especially on homes priced above market
Hot Neighborhoods
North County Coastal continues to lead. Carlsbad and Encinitas are seeing strong demand from relocating professionals and families. The lifestyle appeal is hard to beat.
East County is the value play. La Mesa, Santee, and El Cajon offer entry-level homes under $700K — the most affordable path to homeownership in the county.
Downtown/Little Italy condos are rebounding after a soft 2024. Young professionals and investors are snapping up units as rents continue to climb.
Advice for Spring 2025
Buyers: This is the most balanced market since 2019. You have leverage to negotiate. Do not rush, but do not wait for rates to drop to 4% — that is unlikely anytime soon.
Sellers: Price accurately from day one. The market will tell you quickly if you are overpriced. Invest in staging and professional photography — they are more important than ever in a competitive inventory environment.
Want a detailed market analysis for your neighborhood? Contact Sam for a free consultation.