Suburban homes in San Diego reflect the current real estate market trends.
San Diego County’s home prices have stabilized for the first time in two years, with a reported median price of $900,000. While the prices are unchanged, longer selling times and increased inventory indicate shifts in the real estate market. Economic factors, including high mortgage rates and buyer hesitance, are influencing buyer behavior. A notable tax relief measure is also under discussion, which could further impact the market. Real estate experts suggest that despite changes, homeownership remains a viable long-term investment.
San Diego – For the first time in nearly two years, home prices in San Diego County have remained flat, signaling a potential shift in the local real estate market. According to recent data from Attom Data Solutions, the median home price in April was reported at $900,000, unchanged compared to the same month last year. This marks a significant pause in a trend of rising home prices that has persisted since May 2021.
While the median price has not increased, the overall market dynamics are changing. Homes in San Diego County are now taking longer to sell, with the median selling time extending to approximately 20 days in April, compared to a quicker average of 15 days last year. The growth in inventory is also apparent, with total homes for sale reaching about 5,760, a notable increase from 4,190 in April 2022. By early June, listings further escalated to 6,377, the highest level in four years.
In terms of sales volume, there were 2,623 homes sold in San Diego County in April, a 14.1% increase year-over-year. However, despite the increase in sales, the number remains below historical averages, demonstrating a complex market landscape. Real estate agents have noted that homes priced above the median are experiencing longer selling periods, while competitively priced homes under the median are performing better, indicating shifts in buyer strategies.
Economic uncertainty is affecting buyer behavior. According to local economist Chris Thornberg, potential buyers are hesitant to engage in bidding wars due to factors such as rising tariffs and stock market volatility. Many buyers are increasingly considering job stability when assessing their ability to commit to a mortgage, focusing on long-term employment prospects. This cautious approach is compounded by high mortgage rates, with the average interest for a 30-year fixed mortgage hovering around 6.81% in late April, resulting in monthly payments that can exceed $5,000 for typical buyers.
Despite the shifting market conditions, Thornberg indicates that a buyers’ market is unlikely to emerge soon due to limited available housing for sale. In March, there were only 50 active housing developments across the region, the lowest recorded in a decade. The constraints on supply, combined with a still relatively high buyer demand, suggest that homeownership remains a valuable long-term investment.
In April, the median sale price for single-family homes fell slightly to $990,625, reflecting a decrease of 2.9% year-over-year. Meanwhile, the price for condos and townhouses has remained stable at $695,000. Comparatively, surrounding areas show varied price movements; Los Angeles County also reported no change at $890,000, while Orange County’s median increased by 0.4% to $1.2 million. Other regions including Riverside County and San Bernardino County saw modest gains of 0.5% and 1.9% respectively, demonstrating a diverse outlook in the Southern California housing market.
In a notable development, a significant tax relief measure titled the One Big Beautiful Bill is currently under discussion in Congress. Should it pass, the bill would increase the SALT deduction for homeowners from $10,000 to $40,000, potentially impacting future buyer decisions and overall market conditions.
As San Diego’s housing market undergoes these changes, the trends indicate a cautious yet evolving atmosphere for both buyers and sellers as they adapt to new economic realities.
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