Navigating the housing market in San Diego is all about staying ahead of the curve. For real estate professionals working with buyers, sellers, or investors, the ability to interpret market trends and provide up-to-the-minute insights is invaluable. June 2025 presents a dynamic landscape, with increasing inventory levels, shifting home prices, and evolving buyer behavior shaping the market.
This comprehensive report dives into the latest metrics, trends, and forecasts to help you confidently guide your clients through San Diego’s housing market. Combining actionable data with expert insights, this piece is designed to elevate your strategy and set your clients up for success.
Key Takeaway
- San Diego Prices Show Slight Decline: The San Diego average house price decreased by 1.2% year-over-year, now sitting at $1,021,321, indicating a cooling market.
- Inventory Levels Increase: Housing supply has grown by 33%, reaching 3.2 months of inventory, giving buyers more negotiating power and options.
- Homes Are Staying On Market Longer: Median days on market have risen to 27, extending sales timelines by 17% compared to last year.
- Suburbs Offer Key Opportunities: Growth in areas like Oceanside and Escondido provides more affordable and attractive housing choices for buyers and investors.
- Rental Demand Fuels Investor Gains: Rising rental prices make single-family and multifamily properties lucrative investment opportunities in 2025.
Market Overview | San Diego Housing Performance
According to June 2025 data, the San Diego housing market remains robust but shows signs of cooling compared to past years.
Key Statistics (County-wide, May 2025):
- San Diego Average House Price: $1,021,321, -1.2% YoY (Zillow June 2025)
- Inventory Supply: 3.2 months (up from 2.4 months in May 2024)
- Median Days on Market: 27 days (average of 17% longer than May 2024)
The slight downturn in median sales prices, combined with a growing inventory supply, suggests that buyers are seeing more negotiating power, though affordability remains a challenge due to elevated mortgage rates.
Related Article: Buyer’s Market vs Seller’s Market: What’s Better for Agents
Challenges and Opportunities in Today’s Market
Understanding the dynamics of the current housing market requires careful consideration of multiple factors. While some metrics indicate a cooling in demand, others highlight persistent issues affecting both buyers and sellers. By analyzing these subtle shifts in market conditions, stakeholders can better position themselves to adapt to the evolving landscape.
Challenges
- Affordability Constraints: Rising mortgage rates have placed San Diego homes out of reach for many middle-income families. First-time homebuyers face significant hurdles with monthly payments for even modestly priced properties climbing sharply.
- Economic Uncertainty: Inflation and job market instability continue to weigh on buyer sentiment. As a result, some potential clients are opting to delay major financial decisions, such as purchasing a home.
- Longer Sales Timelines: Homes across the region are staying on the market longer, with countywide median days on the market extended by 17% compared to May 2024.
Opportunities
- Flexibility for Buyers: With inventory levels up 33%, buyers now have increased options for negotiation and selection. Areas like North County and Escondido are seeing the highest gains in supply.
- Strong Rental Demand: For investors, rising rental prices make multifamily properties or single-family rentals lucrative opportunities. Shifts in renter profiles, driven by affordability issues, further boost returns.
- Neighborhood Repositioning: Suburbs like Oceanside have emerged as attractive options for families and investors, offering coastal proximity with a more affordable price point compared to San Diego’s urban core.
San Diego Housing Market Forecast for the End of 2025
Industry analysts project the San Diego housing market to stabilize throughout 2025 but see a few potential shifts ahead.
Projections
- 3-5% Annual Price Growth: While noticeable price spikes like those post-pandemic are unlikely, consistent annual growth is expected due to San Diego’s high desirability and limited buildable land.
- Moderate Inventory Expansion: Supply is improving slowly, with new construction projects helping close the gap. However, inventory likely won’t return to pre-pandemic levels until late 2026.
- Investor Appeal Remains Strong: Nodes of affordability in surrounding areas, such as Chula Vista and Escondido, will continue to attract investors seeking higher returns amid high rental demand.
Given these conditions, savvy real estate professionals should educate clients on timing their transactions to align with continued inventory improvements and moderate price stability.
Neighborhoods to Watch in San Diego
For real estate agents seeking area-specific opportunities, these neighborhoods show high potential for buyer demand and investor success:
North Park
- Median Price: $856,000
- Why it’s hot: Walkable streets, trendy dining, and urban flair make it ideal for younger professionals.
Oceanside
- Median Price: $780,000
- Why it’s growing: Coastal charm at a relatively affordable price appeals to buyers priced out of areas like La Jolla or Del Mar.
Escondido
- Median Price: $700,000
- Why it works for buyers: Family-friendly, strong school systems, and expanding housing supply fit the bill for relocating households.
Chula Vista
- Median Price: $750,000
- Development appeal: Proximity to new large-scale projects is breathing new life into this suburb.
La Jolla
- Median Price: $1.85M
- Luxury market: Coastal views and prestige keep La Jolla thriving for affluent buyers.
Elevate Your Strategy with These Takeaways
The San Diego housing market is complex but full of opportunity for professionals armed with the right data. Use these actionable insights to help clients make informed decisions:
Counsel buyers on market timing
Monitor booming neighborhoods where inventory gains are occurring, such as North County, and advise buyers accordingly to maximize value.
Target qualified sellers
With sales timelines stretching out, collaborate with motivated sellers to position their homes competitively.
Spot suburban investment goldmines
Areas like Escondido and Oceanside are ripe for investors seeking to benefit from rental growth and long-term appreciation.
By leveraging market knowledge and staying proactive, you can position yourself as an invaluable asset to your clients. The competition in real estate is fierce, but armed with these insights, your expertise will stand out.
Wondering if it’s the right time to become a real estate agent in San Diego? Need more in-depth guidance? Download the latest California Hot Housing Report by Allied Schools today.
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