San Diego Real Estate: Buyers Back as Rates Hit Long-Term Low, Fed Watch Continues

San Diego Housing Market Update – Week Ending September 14, 2025

After last week's holiday-influenced pause, San Diego's real estate market is showing clear signs of renewed buyer activity. New pending sales, our best measure of current buyer demand, saw a significant jump for both detached and attached homes. This suggests that buyers who took a break for Labor Day are now returning to their home search, likely encouraged by a positive trend in mortgage rates.

As reported by Mortgage News Daily, mortgage rates have continued their downward trend, reaching new long-term lows to start the week. This positive movement, combined with the anticipation of a Federal Reserve announcement later this week, is certainly influencing buyer confidence. While much of the Fed's potential move may already be "baked into" current mortgage rates, the overall sentiment is encouraging. Let's see how this played out in the local numbers.

🏠 DETACHED HOMES – Week Ending September 14, 2025

Data for San Diego County detached homes for the week ending September 14, 2025. Source: SDMLS | Analysis by Matt O'Brien, Realtor.

For detached homes, the big news is the 21% jump in new pending sales compared to last week. This strong bounce back indicates that many buyers are re-entering the market after the Labor Day holiday slowdown. Even more positively, we are still up 5.6% over the previous four-week average, showing a solid increase in demand. While new listings saw an expected dip from last week's post-holiday surge, overall active inventory decreased slightly, showing a stable supply. The median sold price did pull back by 4.6% this week, settling closer to where it was at this time last year.

🏢 ATTACHED HOMES (Condos/Townhomes) – Week Ending September 14, 2025

Data for San Diego County attached homes for the week ending September 14, 2025. Source: SDMLS | Analysis by Matt O'Brien, Realtor.

The attached market saw an even more dramatic return of buyers, with new pending sales soaring by an impressive 55% compared to last week. This brings buyer activity not only well above last week but also a significant 16% higher than the previous four-week average, signaling a strong surge in demand for condos and townhomes. Interestingly, the median listing price for homes currently in pending status is down almost 3% compared to the four-week average, suggesting buyers are finding good value. Active inventory saw a slight increase, but buyer demand clearly outpaced any new supply this week. The median sold price eased a bit from last week's high but remains notably higher than last year.

💡 What This Means for You

🔵 For Buyers

This is a clear signal that the holiday pause is over and buyer competition is returning. If you've been waiting for a lull, the window might be closing. With pending sales up and rates hitting long-term lows, now is the time to act. You might also find better value, especially in the attached market, as median pending prices have adjusted slightly.

🟢 For Sellers

The return of buyer activity, especially the strong rebound in pending sales, is great news. This suggests that serious buyers are out there and ready to make offers. With renewed demand, proper pricing and presentation can lead to a quicker sale. Don't wait too long, as market conditions can shift rapidly.

🟠 For Homeowners

The market remains active, and your equity is stable. This week's bounce back in buyer demand, strongly influenced by easing rates and Fed news, is a positive sign for the health of the San Diego real estate market.

💰 For Investors

The significant jump in pending sales, particularly in the attached market, points to renewed buyer confidence. This is a favorable environment for investors looking to list properties or those considering purchasing now before competition truly heats up again. The lower pending prices in the attached market could also present interesting acquisition opportunities.

📞 Ready to Make Your Move?

The San Diego real estate market is dynamic and constantly evolving, with new factors like Fed decisions influencing buyer behavior. Staying informed with the latest data is key to making smart decisions. If you're ready to explore your options, whether buying, selling, or investing, let's connect and strategize.