San Diego's Market Rebalancing: More Homes, Better Opportunities?
San Diego's Market Rebalancing: More Homes, Better Opportunities?
San Diego Housing Market Update – Week Ending June 22, 2025
With inventory rising, San Diego buyers now have more choices and negotiating power than they've seen in years.
This week in San Diego real estate, we are continuing to track the most significant trend of 2025, which is the steady rebalancing of our market. The story remains consistent as active inventory for both single-family homes and condos continues its upward trajectory. This climb gives buyers something they haven't had in years: more choice and breathing room. At the same time, it's prompting sellers to adjust their expectations in response to softer buyer demand.
But to truly understand today's numbers, a little perspective is key. Our current total inventory stands at 6,348 homes (3,738 detached and 2,610 attached). While this is a major increase from the record lows of the last few years, we are still notably below pre-pandemic levels. For comparison, in June 2019, San Diego County had roughly 7,700 homes for sale. So, while the market feels like it's flooded with homes, we're simply moving back toward a more historically normal level of supply.
Let's break down the numbers and see what this continued rebalancing means for you.
🏠 DETACHED HOMES – Week Ending June 22, 2025
| Metric | This Period | Last Week | Change | 4 Week Avg | vs 4-Wk Avg | Last Year | YoY Change |
|---|---|---|---|---|---|---|---|
| New Listings | 416 | 400 | ▲ 4% | 388 | ▲ 7.2% | 480 | ▼ 15% |
| Newly Pending | 233 | 269 | ▼ 13% | 274 | ▼ 15% | 312 | ▼ 25% |
| Newly Sold | 238 | 250 | ▼ 4.8% | 259 | ▼ 8.1% | 285 | ▼ 16% |
| Median DOM | 20 | 22 | ▼ 2 | 18 | ▲ 2 | 18 | ▲ 2 |
| Average DOM | 33 | 32 | ▲ 1 | 32 | ▲ 1 | 26 | ▲ 7 |
| Active Inventory | 3,738 | 3,654 | ▲ 2.3% | 3,524 | ▲ 6.1% | 2,373 | ▲ 58% |
| Weeks of Inventory | 15.5 | 14.5 | ▲ 1 | 12 | ▲ 3.5 | 6.5 | ▲ 9 |
| Median Sold Price | $1,085,000 | $1,087,500 | ▼ .23% | $1,109,600 | ▼ 2.2% | $1,123,000 | ▼ 3.4% |
| Median SP/SF | $593.28 | $592.35 | ▲ .16% | $610.98 | ▼ 2.9% | $596.84 | ▼ .60% |
Data for San Diego County detached single-family homes. Source: SDMLS | Analysis by Matt O'Brien, Realtor.
The trend of growing supply continues in the detached homes market. "Weeks of Inventory" now sits at 15.5 weeks, a significant jump from 6.5 weeks this time last year. This is the direct result of active listings growing by 58% year-over-year while buyer demand, measured by newly pending sales, has decreased by 25%. Though fewer new listings came to market this week compared to last year, the overall inventory is still accumulating due to this slower buyer pace.
This supply and demand dynamic is having a clear impact on prices. The median sold price for a single-family home is now $1,085,000, which is 3.4% lower than a year ago. This signals that sellers are acknowledging the shift and are pricing their homes more competitively. With homes taking a median of 20 days to sell, the era of rapid-fire sales is giving way to a more measured, strategic market.
🏢 ATTACHED HOMES (Condos/Townhomes) – Week Ending June 22, 2025
| Metric | This Period | Last Week | Change | 4 Week Avg | vs 4-Wk Avg | Last Year | YoY Change |
|---|---|---|---|---|---|---|---|
| New Listings | 264 | 270 | ▼ 2.2% | 258 | ▲ 2.3% | 260 | ▲ 1.5% |
| Newly Pending | 130 | 158 | ▼ 18% | 140 | ▼ 7.1% | 178 | ▼ 27% |
| Newly Sold | 127 | 132 | ▼ 3.8% | 131 | ▼ 3.1% | 147 | ▼ 14% |
| Median DOM | 27 | 27 | -- | 26 | ▲ 1 | 21 | ▲ 6 |
| Average DOM | 36 | 36 | -- | 38 | ▼ 2 | 30 | ▲ 6 |
| Active Inventory | 2,610 | 2,546 | ▲ 2.5% | 2,474 | ▲ 5.5% | 1,487 | ▲ 76% |
| Weeks of Inventory | 20.5 | 19.5 | ▲ 1 | 16 | ▲ 4.5 | 8 | ▲ 12.5 |
| Median Sold Price | $649,000 | $676,500 | ▼ 4.1% | $681,625 | ▼ 4.8% | $700,000 | ▼ 7.3% |
| Median SP/SF | $612.56 | $588.86 | ▲ 4% | $592.91 | ▲ 3.3% | $595.81 | ▲ 2.8% |
Data for San Diego County attached homes (condominiums & townhomes). Source: SDMLS | Analysis by Matt O'Brien, Realtor.
The rebalancing story is even more pronounced in the attached market. Active inventory for condos and townhomes has swelled by 76% compared to last year, pushing the "Weeks of Inventory" to 20.5 weeks, which is up from just 8 weeks a year ago. This represents a very significant increase in available homes relative to the current pace of sales.
The financial effect is undeniable. The median sale price for attached homes has fallen to $649,000, a 7.3% drop from last year, reflecting the increased competition among sellers. In a curious twist, the median price per square foot has actually risen 2.8% year-over-year. This could point to a market where smaller, higher-end units are making up a larger portion of sales, but the headline price is what will capture the attention of most buyers and sellers.
💡 What This Means for You
🟢 For Buyers
Your patience is being rewarded. You have more homes to tour and less competition for them. This is the time to negotiate on price and terms. You have leverage that didn't exist 12-24 months ago, so use it to find the right home at the right price.
🔵 For Sellers
The market has shifted, and so must your strategy. Pricing your home correctly from day one is non-negotiable. Work with an expert to analyze the most current data. High-quality marketing and a realistic approach to negotiations are essential for a successful sale.
🟡 For Homeowners
Your equity position remains strong thanks to the significant gains of the past several years. This market movement is a return to normalcy, not a cause for alarm. It is, however, a wise time to assess your long-term goals. If you aren't selling, enjoy your home and the stability of your investment.
🟠 For Investors
This trend signals new possibilities. Lower entry points can improve long-term value, but diligence is required. With higher inventory, you must factor in potentially longer carrying times and a softer rental market. Detailed cash-flow analysis is your best friend right now.
Ready to Chart Your Course?
The data tells a powerful story about the market, but your real estate journey is personal. Whether you're a buyer seeing new opportunities, a seller navigating this landscape, or a homeowner curious about your equity, understanding how these numbers apply to you is what matters most.
If you'd like to discuss how this market shift impacts your short or long-term goals, I'm here to provide clarity and a personalized strategy. Let's connect.
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