San Diego, CA Housing Market Report

The San Diego housing market is currently navigating a period of stabilization following a year of modest price corrections. As of December 2025, the median home value stands at $972,713, reflecting a 3.76% decrease compared to the previous year. While the market historically favored sellers with aggressive bidding wars, the current climate has shifted toward a more balanced state. With active inventory rising by over 10% to 5,687 units and homes spending an average of 58 days on the market, buyers now have significantly more leverage and time to conduct due diligence than they did in previous cycles.

Price trends over the last six months indicate that the market may have found its floor. After a steady decline from July through October, values began a slight upward crawl in November and December. This suggests that while year-over-year figures remain negative, month-over-month momentum is returning. The sale-to-list ratio of 0.99 indicates that homes are selling very close to their asking prices, showing that sellers have adjusted their expectations to meet current high-interest-rate realities, while buyers are still willing to pay fair market value for quality inventory.

Looking ahead, the San Diego-Chula Vista-Carlsbad metro area remains a high-demand region constrained by geographic boundaries, which will likely prevent any significant price collapses. For prospective buyers, the increase in inventory and longer days on market provide a rare window of opportunity to negotiate without the pressure of immediate competition. Sellers, on the other hand, should focus on realistic pricing and property condition, as the days of automatic over-asking offers have largely passed. The rental market continues to show resilience with a 1.21% annual increase, suggesting that housing demand in the region remains fundamentally strong despite the fluctuations in purchase prices.