San Diego Real Estate Market Update: March 2025

As of March 2025, the San Diego real estate market continues to exhibit notable trends characterized by rising home prices, limited inventory, and sustained demand. Below is an overview of the current market conditions:​

Home Prices

• Median Sale Price: In February 2025, the median sale price of single-family homes in San Diego County reached $1,050,000, marking a 5.0% increase compared to February 2024 and a 1.1% rise from January 2025. ​

• Price per Square Foot: The average price per square foot was $610, reflecting a 4.1% year-over-year increase and a 2.9% month-over-month rise. ​

Sales Volume

• Closed Sales: A total of 1,056 single-family homes were sold in February 2025, representing a 6.5% decrease from the previous year but an 8.3% increase from January 2025. ​

Market Dynamics

• Days on Market: Homes typically remained on the market for an average of 15 days in February 2025, indicating a 15.4% increase from February 2024 but a significant 46.4% decrease compared to January 2025. ​

• Inventory Levels: The active inventory stood at 3,330 homes in February 2025, showing a 4.5% decline year-over-year and a 7.9% drop from the previous month. ​

• New Listings: There were 1,769 new listings in February 2025, an 11.0% increase from February 2024 but a 13.8% decrease compared to January 2025. ​

Market Competitiveness

• Sale-to-List Price Ratio: Sellers received, on average, 100% of their asking price in February 2025, consistent with the previous year and reflecting a 1.0% increase from January 2025. ​

• Time to Pending: Homes in San Diego are going under contract in approximately 34 days, indicating a highly competitive market.

Rental Market

• Rent Prices: While rent prices have been decreasing nationwide, San Diego has experienced a decline in rent prices, aligning with the national trend.

Outlook

San Diego is projected to be one of the most competitive real estate markets in 2025, ranking 19th on Zillow's annual "hottest market" list, climbing ten spots from the previous year.

Implications for Buyers and Sellers

• Buyers: The market remains competitive, especially for well-priced homes in desirable locations. Prospective buyers should be prepared with pre-approved financing and act swiftly when suitable properties become available.​

• Sellers: Current conditions favor sellers, with homes selling quickly and often at or above asking prices. The sustained demand and limited inventory present a favorable environment for those considering listing their properties.​

In summary, the San Diego real estate market in March 2025 is characterized by rising home prices, limited inventory, and robust demand, creating a competitive landscape for both buyers and sellers.​