News Summary
In March, home prices in the San Diego metropolitan area rose by only 1.67% year-over-year, marking the slowest annual growth in several years. The rise in mortgage rates has contributed to this slowdown, with the city ranking 15th out of 20 in the S&P Case-Shiller index. While other cities saw higher increases, San Diego faces challenges with longer selling times and an ongoing housing supply shortage. Despite the slow growth, analysts predict potential price corrections may eventually support real estate recovery in the region.
San Diego – In March 2025, home prices in the San Diego metropolitan area rose by only 1.67% year-over-year, reflecting the slowest annual growth in several years, as reported by the S&P Case-Shiller Indices. This marks the smallest increase since the summer of 2023 when rising mortgage rates began to affect the housing market adversely.
The San Diego metro area, encompassing all of San Diego County, now ranks 15th out of 20 cities in the Case-Shiller index, a significant drop considering it was the fastest-rising market from late 2023 to early 2024. Meanwhile, cities like New York, Chicago, and Cleveland experienced much higher increases in home prices during this period, with New York showing a remarkable 7.96% increase, followed by Chicago at 6.5% and Cleveland at 5.9%.
Nationwide trends indicate a growing number of real estate listings are experiencing price cuts, with rates hitting a six-year high, according to findings from Zillow. Homes in the San Diego area also took longer to sell, prompting many sellers to lower their asking prices. Analysts predict a possible “price correction” that may foster a modest recovery in real estate sales over the next year.
The S&P Case-Shiller Indices, regarded by economists for their reliable measure of repeat sales of identical single-family homes, also suggest that despite the slowdown in sales, a housing supply shortage continues to exert influence on price levels. In March, San Diego County had only about 4,900 homes available for sale, an increase from approximately 3,800 homes available during the same time last year, but still not sufficient to satisfy demand.
The median home price for single-family homes in San Diego County was around $1 million, as reported by Attom Data Solutions. In stark contrast, median prices in other cities reported much lower figures, with Chicago’s median at just $335,000 and Cleveland at $120,000.
Redfin’s data revealed that in March, a notable 31% of listed homes in San Diego County underwent price reductions, a figure considerably higher than the 24% in Cleveland and 14% in Chicago. It’s also noteworthy that around 50% of sellers in San Diego adjusted their prices downwards in the past month.
The situation in San Diego stands in contrast to Tampa, Florida, the only market among the indexed areas to witness a price decline, posting a 2.16% decrease year-over-year. Meanwhile, Dallas recorded a mere 0.19% annual growth in home prices.
Overall, the national landscape remains somewhat brighter, with home prices across the United States rising by 3.37% in March 2025, according to the Case-Shiller Index.
Since the turn of the century, the median home price in San Diego County has significantly increased, climbing by over $785,000 from $235,000 in 2000 to approximately $1,020,394 in February 2025. Contributing factors to the ongoing rise in home values include geographic limitations and a robust local economy.
Additionally, experts foresee steady monthly increases in home prices for San Diego while other California cities may experience more volatility. The Federal Reserve’s recent statements signal that interest rates are unlikely to decrease soon, largely due to anticipated higher tariffs impacting inflation.
In summary, San Diego’s housing market is facing a noteworthy slowdown in growth, but supply challenges and economic fundamentals may continue to support price levels in the long term.
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Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
