San Diego Housing Market Update – Week Ending May 25, 2025

 

 

This week in San Diego County real estate, the spotlight is on two key trends: a significant surge in active inventory year-over-year, giving buyers more options, coupled with a noticeable dip in new listings coming onto the market. While more homes are currently for sale compared to last year, fewer sellers introduced new properties this week. Buyer activity (newly pending sales) showed a mixed response, picking up for detached homes this week but still trailing last year's pace overall, especially for condos and townhomes.

Let’s take a closer look at this week’s numbers…

🏠 DETACHED HOMES – Week Ending May 25, 2025

 

 

The detached homes market saw New Listings (375) pull back significantly, down 13% from last week and a substantial 16% from the same week last year. Despite this lower flow of new supply, Active Inventory remains impressively high compared to recent years at 3,423 units – a massive 63% increase year-over-year. This has pushed the Weeks of Inventory to 12 weeks, nearly double last year's 6.5 weeks.

Buyer demand, reflected in Newly Pending Sales (322), showed a healthy pickup this week, jumping 16% from last week and 10% above the 4-week average. However, it’s important to note this is still 3.3% below last year's levels. On the pricing front, the Median Sold Price continues its upward path, reaching $1,160,000 – a strong and healthy 7.9% increase from this time last year. Homes are still moving relatively quickly with a Median DOM of 15 days.

Pricing remains strong, with the median sold price up 4.2% over the 4-week average and nearly 8% higher than this time last year.

🏢 ATTACHED HOMES (Condos/Townhomes) – Week Ending May 25, 2025

 

 

For attached homes, the Active Inventory situation is even more pronounced, still way up with a staggering 85% year-over-year increase to 2,415 units. This has resulted in 19.5 Weeks of Inventory, a significant jump from 8 weeks last year. Echoing the detached market, New Listings (233) also receded as new supply cools, down 11% from last week and 12% year-over-year.

Buyer demand, with 142 Newly Pending Sales, held steady with recent trends (flat against the 4-week average after a 7.6% weekly rise) but, like detached homes, remains down 18% compared to last year. The Median Sold Price for condos and townhomes is holding steady and demonstrating strength, up 4.8% year-over-year to $725,000. However, it's worth noting the Median Sold Price per Square Foot dipped slightly from last year and the 4-week average, and homes are taking longer to sell (Median DOM at 30 days), suggesting buyers are becoming more price-sensitive amidst the greater choice.

Prices are holding firm. The median sold price is up 1.9% as compared to the previous 4-week average and nearly 5% higher than a year ago, though price per square foot slipped slightly.

🧠 What This Means for You

🟢 For Buyers

More choices, less frenzy! The significant jump in active inventory, especially year-over-year, means you have more homes to look at and potentially more negotiating power. While prices are still up annually for both detached and attached homes, the increase in Days on Market (DOM) for attached properties and the dip in SP/SF suggest some sellers might be more flexible. Don't expect massive discounts, but you might find more room for negotiation than a year ago.

🔵 For Sellers

The landscape is shifting. While median prices are holding strong and even increasing year-over-year, the drop in new listings alongside a massive pile-up of active inventory means your property needs to shine. Proper pricing, impeccable presentation, and strategic marketing are crucial. With more competition (active listings), be prepared for potentially longer selling times, particularly for attached homes. The decrease in new listings might be a strategic pause for some, but if you need to sell, be realistic about current conditions.

🟡 For Homeowners

Your equity position likely remains strong, with median prices up year-over-year for both property types. However, the market is showing signs of increased supply and slightly cooling demand compared to last year. If you're not planning to sell, this is more of a "watch and see" moment. If you're considering a Home Equity Line of Credit (HELOC), renovation, or move-up purchase, now’s a good time to evaluate options.

🟠 For Investors

The surge in inventory, particularly the 85% YoY increase for attached homes, could signal opportunities. Longer DOM for attached properties and a slight dip in SP/SF might present chances to acquire properties with less competition than in previous years. However, the decrease in newly pending and sold units for attached properties warrants caution; ensure your numbers account for potentially longer holding periods or softer rental demand in certain segments. The detached market, while also having higher inventory, shows more resilient buyer activity this week. Inventory is expanding, but rents remain competitive. The current price trend favors long-term holds, especially for detached properties.

🛠️ Pro Tip

With inventory climbing, sellers need to make their homes irresistible. Focus on "move-in ready" condition. Fresh paint, updated (or sparkling clean) fixtures, and decluttered spaces can make a world of difference. Buyers have more options now; give them a reason to choose yours without hesitation. If you're buying, track median DOM in your segment. A sudden drop could signal rising competition.

📣 Curious how this week’s trends affect your next move? Reach out! I’m happy to walk you through it.