A Tale of Two Markets: San Diego Detached Homes Cool While Condo Demand Accelerates

San Diego Housing Market Update – Week Ending August 17, 2025

This week’s numbers reveal a fascinating and important divergence in the San Diego housing market. The data for single-family homes points to a clear cooling trend, driven by a significant pullback in buyer demand. In stark contrast, the market for condos and townhomes is showing signs of acceleration, with buyer activity on the rise. This split narrative is creating unique challenges and opportunities for buyers and sellers in each segment. Let's break down exactly what’s happening.

🏠 Detached Homes – Week Ending August 17, 2025

Data for San Diego County detached single-family homes. Source: SDMLS | Analysis by Matt O'Brien, Realtor.

The story for detached homes is all about cooling demand. While a slowdown is typical for this time of year, the data shows this is more than just a seasonal dip. The number of homes going into escrow (Newly Pending) saw a sharp decline across the board: down 9.7% from last week, 10% from the four-week average, and 8% from this time last year. This cooling trend is further confirmed by the number of closed sales, which, at 241, is also down 8% from the same week in 2024.

This sustained pullback from buyers is naturally leading to softer prices. The median sold price fell to $1,050,000, a 1.9% dip from the prior week and 3.8% below the recent four-week average. The primary driver of this cooling trend is the measurable decrease in buyer competition.

🏤 Attached Homes (Condos/Townhomes) – Week Ending August 17, 2025

Data for San Diego County attached homes (condos/townhomes). Source: SDMLS | Analysis by Matt O'Brien, Realtor.

The attached home market is telling the opposite story. Here, buyer demand is accelerating. Newly pending sales climbed 5.4% week-over-week, rose 9.9% above the four-week average, and are even slightly ahead of last year's pace. This shows a motivated and growing pool of buyers for condos and townhomes.

So, if demand is rising, why are prices falling? The median sold price of $650,000 is 3.7% lower than it was a year ago. The answer lies in an abundant supply of listings that is currently outpacing even this rising demand; inventory is still up 52% year-over-year. It's also worth noting an external factor: many condo complexes across San Diego County are facing significant challenges with master HOA insurance policies. These rising costs can impact overall affordability and, in some cases, limit financing options for buyers, putting additional pressure on prices despite the healthy demand.

💡 What This Means for You

For Buyers

These two distinct market trends create different opportunities. If you're looking for a single-family home, the decline in buyer demand means less competition and more room for negotiation. If you're in the market for a condo or townhome, the rising demand suggests you should be prepared to act, but the high inventory and affordability headwinds are keeping prices in check, for now.

For Sellers

Your strategy depends entirely on which market you are in. If you are selling a detached home, you must be proactive in responding to the drop in demand by pricing your home correctly from day one. For condo and townhome sellers, the rising demand is a strong positive, but you are still competing with a large number of other listings, making presentation and pricing just as critical.

For Homeowners

Understanding this market divergence is key to tracking your home's value. The overall market is not moving in one direction. The value of single-family homes is being tested by lower demand, while the value of attached homes is being influenced by the dynamic between rising demand and high supply.

📞 Ready to Make Your Move?

The data tells a broad story, but your situation is unique. Whether you're feeling excited by the new opportunities as a buyer or have questions about how to position your home for a successful sale in this market, I'm here to help. Let's connect for a pressure-free chat to talk about your specific goals and how we can navigate these changes together.