San Diego Real Estate Market Update | Q3 2025 | EQ International

As we close out the third quarter of 2025, San Diego’s real estate market continues to evolve, showing signs of balance after several years of rapid growth. From rising inventory to stabilizing prices, the market remains strong — but more strategic than ever. Here’s a closer look at what’s happening across the county and what it means for buyers and sellers heading into Q4.

A Snapshot of the Market

• Home Prices: According to recent data, the average home value in San Diego County sits around $916,000, a slight 2–3% dip from last year. Within the city of San Diego, the typical home value is approximately $981,000, showing a modest 4% year-over-year decline. While this cooling marks a shift from the pandemic-era frenzy, prices remain historically high — reflecting San Diego’s enduring desirability and limited housing supply.

  
  

• Days on Market & Inventory: Homes are taking longer to sell than they did a year ago, now averaging 35 days on the market compared to about 25 last fall.Inventory has gradually increased, offering more opportunities for buyers, with the unsold inventory index rising to roughly 3.1 months — edging closer to a balanced market.

  
  

• Buyer vs. Seller Dynamics: While San Diego remains competitive overall, the scales are beginning to even out. Sellers still benefit from strong regional demand, but buyers are gaining leverage, with more choices and less pressure to rush into bidding wars.

What’s Driving the Shift

• Interest Rates & Affordability: Mortgage rates in the 6% range continue to challenge affordability, prompting more measured decision-making among buyers. Still, San Diego’s lifestyle appeal keeps demand solid — especially in coastal and luxury markets.

  
  

• Limited Supply Meets Lasting Demand: Even with more listings, San Diego’s housing inventory remains tight due to geographic constraints and limited new construction. That’s helping to stabilize prices and sustain long-term value, particularly in sought-after neighborhoods like La Jolla, Del Mar, and Encinitas.

  
  

• Neighborhood Trends: High-demand areas — including coastal North County and central luxury enclaves — continue to perform well, with some submarkets even recording record highs. Meanwhile, more suburban and entry-level segments are seeing moderate adjustments, offering better opportunities for first-time or move-up buyers.

What This Means for You

For Buyers:

• Expect more options and less competition than last year.

• Focus on value, not just price — well-located and well-maintained homes remain in demand.

• Stay alert to interest rate trends; even small rate changes can impact monthly payments.

• Be ready to move confidently when the right home appears.

For Sellers:

• Pricing strategy is everything. Overpricing can cause listings to linger.

• Presentation matters — invest in staging and professional marketing to stand out.

• Homes that are priced right and beautifully presented continue to attract multiple offers.

• Work with an experienced agent who understands San Diego’s micro-markets.

Looking Ahead: Q4 and Beyond

As we move toward the end of 2025, all eyes are on interest rate trends and inventory levels. A drop in rates could re-energize the market heading into 2026, while continued stability may help maintain balance.San Diego’s fundamentals — strong employment, lifestyle appeal, and constrained land supply — continue to make it one of the nation’s most resilient and desirable markets for real estate investment.

The Bottom Line

San Diego’s real estate market in Q3 2025 is steady, strategic, and full of opportunity. It’s not the overheated sprint of the past few years, but a sustainable pace — ideal for thoughtful buyers and sellers who approach the market with clarity and expertise.

Whether you’re planning to buy, sell, or invest, now is the time to align with an experienced advisor who understands how to navigate San Diego’s evolving landscape.