San Diego Real Estate 2025 Review

San Diego Real Estate: 2025 Year-in-Review & 2026 Outlook

As we close the books on 2025, the San Diego housing market has proven once again why it’s one of the most unique—and resilient—landscapes in the country. While the national headlines often paint a picture of broad volatility, America’s Finest City followed its own path of “recalibration.”

If you’re a homeowner, a hopeful buyer, or an investor, here is the breakdown of where we’ve been and where we’re headed.

San Diego Real Estate 2025 Review

2025: The Year of the “Gentle Correction”

For much of 2025, the San Diego market moved away from the frantic bidding wars of previous years and toward a more balanced, albeit expensive, “stasis.”

• Prices Stabilized: After years of breakneck appreciation, prices finally took a breather. The median home price for San Diego County hovered around $900,000 to $985,000 throughout the year. While detached single-family homes saw modest gains of about 1–3% in some pockets, the overall market saw a slight year-over-year softening of roughly 1.5% to 2%.

• Inventory Eased (Slightly): The “lock-in effect”—where homeowners stayed put to keep their 3% mortgage rates—began to crack. We saw a year-over-year increase in inventory (up nearly 20% by Q4), giving buyers more options than they’ve had in nearly three years.

• Days on Market (DOM) Increased: Homes didn’t fly off the shelf in 48 hours like they used to. By the end of 2025, the median time to pending grew to about 30–40 days. This shift gave buyers more time for due diligence and more room to negotiate repairs or closing cost credits.

The 2026 Outlook: A “Great Housing Reset”

What can we expect when the calendar turns? Most analysts are calling 2026 the year of the “Great Housing Reset.”

1. Mortgage Rates and Affordability

Economists predict that mortgage rates will continue a slow, jagged slide. While we aren’t returning to the 3% era, forecasts suggest the 30-year fixed rate could settle into the high 5% to low 6% range by mid-2026. This small dip, combined with rising wages, is expected to make homebuying more affordable for the first time in years.

2. The Return of the “Spring Surge”

Because so many buyers sat on the sidelines in 2025 waiting for rates to drop, there is significant pent-up demand. Expect a very active spring 2026 market. As rates ease, those “on-the-fence” buyers will likely jump back in, which could lead to a modest rebound in prices.

3. Inventory Remains the “X-Factor”

Despite more listings hitting the market, San Diego still faces a chronic supply shortage. We are geographically hemmed in by the ocean, the mountains, and the border. Because demand will likely outpace new construction, we expect home values to remain robust, with a forecast of stagnation to 2% growth—a healthy, “normal” market pace.

The Bottom Line

• For Sellers: You still hold the upper hand due to low supply, but you can no longer “overprice and hope.” Success in 2026 will require professional staging and realistic pricing.

• For Buyers: 2026 will offer more breathing room. With rates trending down and more inventory available, you’ll have more leverage than you did during the post-pandemic boom.

San Diego real estate isn’t crashing; it’s maturing. Whether you’re looking in North County or the South Bay, the focus for 2026 should be on long-term value rather than trying to perfectly time the market’s bottom.

San Diego Real Estate 2025 Review

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        DISCLAIMER:

        • Some of the links in this description and in our videos may be affiliate links, and pay a small commission if you use them, but never increase the basic cost. I really appreciate the support. The content in my Youtube videos SHALL NOT be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other & may be outdated or inaccurate; it is your responsibility to verify all information. I am a not financial adviser. I only express my opinions based on my experiences. Your experience may be quite different. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. You must conduct your own research. There is NO guarantee of gains or losses on any investments. My produced videos are for entertainment purposes ONLY.  DO NOT make buying or selling decisions based on these videos. If you need advice, please contact a qualified CPA, attorney, insurance agent, contractor/electrician/engineer, financial advisor, or the appropriate professional for the subject you would like help with.
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