News Summary
San Diego’s home sales dropped by 9% in May compared to last year, reflecting a national trend of decreasing home sales. The median home price stabilized at $900,000, while rising mortgage rates have increased buyer affordability challenges. Homes are also taking longer to sell, resulting in a competitive market with about 6,800 listings. Various pricing trends indicate that San Diego remains one of the least affordable housing markets globally. Potential buyers are encouraged to reassess their financial situations in light of the ongoing market changes.
San Diego experiences a notable decrease in home sales, with May figures revealing a drop of 9% compared to the previous year. In total, San Diego County recorded 2,384 home sales last month. This decline is part of a broader national trend where home sales have decreased by 11% annually. The main factors contributing to this downturn are high mortgage rates and sellers’ resistance to lowering their asking prices.
The median home price in San Diego County remained stable at $900,000 over the past two months, reflecting a 0.2% decrease from the prior year. This marks the first annual decrease in the median price since May 2023. The median price takes into account all closed sales of single-family houses, townhouses, and condos. Meanwhile, the average mortgage rate for a 30-year fixed-rate loan peaked at 6.89% in May, exacerbating affordability issues. Buyers looking at the median-priced home would face an estimated monthly payment of around $5,100, assuming a 20% down payment.
In addition, homes in San Diego County are taking longer to sell, with the median days on the market increasing to 25 days in May, compared to 16 days during the same period last year. The number of homes listed for sale surged to approximately 6,800, a significant increase from 4,800 in May 2024 and 3,200 in May 2023. This glut of listings indicates a challenging market for sellers, amplifying competition among them.
The real estate landscape features variations in pricing as well; for single-family homes in San Diego, the median sale price stands at $1 million, reflecting a 1% increase over the past year. However, prices for condos and townhouses dipped to a median of $681,000, marking a 2.7% decrease on an annual basis. Amid these trends, San Diego ranks as the 10th most unaffordable metro area across the globe for purchasing a home, according to the Demographia International Housing Affordability report. Other California metropolitan areas facing affordability crises include Los Angeles, San Francisco, and Riverside.
For further context, during the economic challenges of the Great Recession, San Diego saw 3,140 home sales in May 2008 and 3,250 in May 2009, suggesting that the current market slump is approaching those levels. As of June, statewide home sales in California increased by 4% from May, yet remain down by 0.3% compared to the previous year. In June, the median home price in San Diego County was recorded at $1.025 million, down from $1.05 million in May and $1.054 million in June 2024. At the statewide level, California’s median home price for June stood at $899,560, exhibiting a minor decline of 0.1% from both May and June of last year.
As the San Diego housing market remains sluggish, potential homebuyers are increasingly deterred by persistent high prices and interest rates. This environment emphasizes the need for potential buyers to thoroughly evaluate their financial situations and adapt to the shifting dynamics of the housing market in San Diego County.
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Additional Resources
- San Diego Union Tribune: Uncertainty Creates Paralysis in Home Sales
- 10 News: Home Sales Decline in San Diego County
- Patch: Home Sales Report in San Diego County
- Redfin: Home Price Index – June 2025
- NBC San Diego: Million-Dollar Housing Market Signs of Cooling
- Wikipedia: San Diego
- Google Search: San Diego housing market
- Google Scholar: San Diego housing market
- Encyclopedia Britannica: San Diego
- Google News: San Diego real estate
