News Summary
San Diego County is experiencing a significant slowdown in luxury home sales, with properties priced at $6 million and above taking considerably longer to sell compared to last year. High-end homes now average 633 days on the market, up from 400 days. This trend is attributed to affluent buyers’ concerns over the economy, compounded by stock market volatility. Pending luxury home sales have dropped by 8.6% year-over-year, reflecting market dynamics amid economic challenges. Despite this downturn, new developments are planned to meet the demand for luxury homes in the area.
San Diego County is witnessing a significant slowdown in luxury home sales, with properties priced at $6 million and above taking much longer to sell compared to the previous year. As of late May, these high-end homes averaged 633 days on the market, a stark increase from 400 days in the same period last year. Homes in the $4 million to $5.9 million range have also seen a notable uptick in selling time, averaging 308 days now, compared to just 147 days last year. In contrast, properties listed near the median home price of $750,000 to $1 million have been selling in an average of just 77 days.
Market analysis indicates that the downturn in luxury home sales is largely attributed to affluent buyers’ growing concerns regarding the economy, particularly driven by the economic implications of tariff policies set forth by the current administration. Influences from stock market volatility are compounding these worries, leading luxury buyers to closely monitor their investment performance.
Recent data reveals that pending luxury home sales in San Diego County have declined by 8.6 percent year-over-year. Nationally, luxury sales are down by 9.9 percent, as highlighted by a Redfin study that examined data from February to April.
The luxury market has some high-profile listings still awaiting buyers. A notable example is the Sand Castle mansion in La Jolla, which has been on the market since October 2023 for $108 million without any price reductions. This grand property, built to resemble the Palace of Versailles, exemplifies the current challenges sellers face in the luxury segment. Another significant listing is the Willow Creek Estate, now on the market for $84.9 million after initially being priced at $100 million, featuring 26 bedrooms and 27 bathrooms in its expansive 12,000 square feet.
San Diego County currently has 3,573 single-family homes for sale, of which only 188 are priced at $6 million and above. This high-end segment is particularly competitive, with 15 homes listed at $10 million or higher having been on the market for six months or more. For instance, the Point in Coronado has been listed since November 2023 for $43 million, showcasing a 3,600-square-foot rooftop deck. The luxury property market is seeing a mix of long-standing listings and newer additions, such as a mansion at 2920 Camino Del Mar listed for $75 million, boasting an impressive 30,491 square feet.
Alicia Keys’ purchase of the Razor House in La Jolla for $20.8 million in summer 2019 took over a year and multiple agents to sell, highlighting long-standing challenges in this sector. The median sale price for a detached house in La Jolla, however, has increased by 14 percent to $3.5 million in early 2025, reflecting a segmented recovery in the market.
In response to the demand for luxury homes, WJK Development plans to build nine additional high-end residences in La Jolla, after acquiring a property for $8.5 million. These new homes will be priced between $4 million and $4.4 million, offering options from 2,700 to 3,600 square feet to prospective buyers.
Additionally, the luxury multifamily housing market is expanding with investments from Raintree Partners, which is committing over $225 million to new developments totaling 498 units across three projects in San Diego County. These offerings, which include Treehouse, Flora + Fauna, and Dos Lunas, aim to blend aesthetic appeal with high-end amenities.
Overall, while the luxury segment in San Diego County faces pressures from economic uncertainties, there remains a foundation of development and demand in certain areas. The fluctuation in selling times and market dynamics reflects broader economic trends affecting buyers and sellers alike.
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Additional Resources
- San Diego Union-Tribune: Luxury Homes for Sale
- Wikipedia: Luxury Real Estate
- OC Business Journal: Luxury Homes Development
- Google Search: Luxury Real Estate Market Trends
- YieldPro: San Diego Housing Market
- Encyclopedia Britannica: Real Estate
- Mansion Global: Top U.S. Luxury Markets
- Google News: Luxury Home Sales 2025
