San Diego Real Estate Market Update: February 2025

San Diego Real Estate Market Update: February 2025

Stabilizing Home Prices

In February 2025, San Diego's real estate market is experiencing a stabilization in home prices. The median home price has reached $951,513, reflecting a 7.2% year-over-year increase. This suggests a cooling from the rapid growth observed in previous years.

Gradual Increase in Inventory

The housing inventory in San Diego is gradually increasing, providing buyers with more options. Currently, there are 2,198 single-family detached homes and 1,560 single-family attached condos and townhomes available. This totals 3,758 properties on the market.

Interest Rates Influence Buyer Behavior

Interest rates continue to play a significant role in buyer decisions. While rates have fluctuated, they currently stand at approximately 6.2% for a 30-year fixed mortgage. This has led some buyers to adjust their budgets, but demand for homes remains resilient.

Notable Neighborhoods to Watch

Certain San Diego neighborhoods are attracting increased interest due to their unique appeal:

• Encinitas: Ideal for coastal living enthusiasts.

• South Park: Known for its walkability and historic charm.

• San Marcos: Experiencing rapid growth with family-friendly communities.

• Chula Vista: Thriving with waterfront developments and vibrant cultural scenes.

Implications for Buyers and Sellers

• For Buyers: The increasing inventory offers more choices and slightly less competition. However, acting quickly on desirable properties remains crucial.

• For Sellers: Pricing your home competitively and ensuring it shows well can attract serious buyers in this evolving market.

Looking Ahead

Market forecasts predict a 3.6% increase in home values by November 2025, driven by ongoing demand and limited inventory in the region.

In summary, San Diego's real estate market in February 2025 is characterized by stabilizing prices, gradually increasing inventory, and sustained buyer interest influenced by current interest rates. Both buyers and sellers should stay informed and adapt their strategies to navigate this dynamic market effectively.