Despite bad news elsewhere, San Diego home prices, sales up: Median price up $15K in July – NBC 7 San Diego

San Diego Home Prices (interactive plots)


San Diego Housing Market Bucks Statewide Trend, But Challenges Persist

San Diego County defies California's housing downturn with 3.8% sales increase in July, while home prices rise modestly amid broader market uncertainties

San Diego County's housing market showed resilience in July 2025, posting a 3.8% increase in home sales that contrasted sharply with declining activity across California, according to data released by the California Association of Realtors (CAR). However, the local market continues to face significant headwinds as broader economic uncertainties and affordability challenges persist.

July Sales Surge Amid Statewide Decline

Home sales increased in San Diego County in July, while declining statewide, the California Association of Realtors announced Tuesday. The county's sales figure rose 3.8% from June, bucking the statewide trend where closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 261,820 last month. July home sales activity dipped 1% from the annualized rate of 264,400 homes in June and was down 4.1% from a year ago, when that annualized rate was 272,990.

Despite the month-over-month gains, San Diego County sales remained 6.5% below July 2024 levels, reflecting the broader cooling in housing activity that has characterized the market over the past year.

Home Prices Show Modest Growth

The median sale price of an existing, single-family home in San Diego County was $1.040 million in July, up from $1.025 million in June, and from $1.020 million in July 2024. This represents a $15,000 month-over-month increase and a $20,000 year-over-year gain, demonstrating continued upward pressure on prices despite market challenges.

The local performance significantly outpaced statewide trends, where July's statewide median home price was $884,050, down 1.7% from June and down 0.3% from $886,420 one year ago.

Mixed Market Signals Emerge

Recent data reveals a complex picture of San Diego's housing market. While different sources show varying price trends, the overall direction suggests a market in transition. The median sale price for detached homes rose 4.7 percent year-over-year to $1,099,000, reflecting ongoing demand for standalone properties in desirable locations. On the flip side, attached homes like condos and townhomes dipped 7.1 percent to a median sale price of $650,000.

Market dynamics are also shifting in favor of buyers. Days on market rose sharply, climbing 52.6 percent to 29 days for detached homes and 40.0 percent to 42 days for attached, indicating properties are taking longer to sell and providing buyers with more negotiating power.

Inventory Levels Improving

One of the most significant changes in the market has been the increase in available housing inventory. Inventory growth continued to reshape the landscape as more Sellers listed new homes for sale this July. This improvement in supply conditions is providing relief to buyers who have faced intense competition in recent years.

For San Diego, the Unsold Inventory Index (UII) — which measures how many months it would take to sell all the homes on the market at the current sales rate — was 3.6 months in June 2025. That's up from 2.7 months in June 2024.

Economic Factors and Market Outlook

The housing market's performance is closely tied to broader economic conditions, particularly mortgage rates. "The housing market experienced a modest slowdown in both sales and prices in July as some buyers stepped back, waiting for more certainty in the market and broader economy," CAR President Heather Ozur said in a statement. "Encouragingly, mortgage rates have recently declined to their lowest level since last October, and that has already led to an increase in purchase applications. If this trend continues, we could see stronger buyer activity and renewed demand in the months ahead."

Current mortgage rates, which averaged 6.58% for 30-year fixed loans as of mid-August 2025, remain a significant factor in buyer decision-making. The 30-year fixed-rate mortgage averaged 6.58% as of Aug. 14, according to Freddie Mac, down from recent highs but still well above the historic lows seen during the pandemic.

Regional Performance Varies

Different areas within San Diego County showed varying levels of activity. In July, the top zip codes in San Diego County with the most home sales were: • 92028 (Fallbrook) with 46 • 92056 (Oceanside East) with 40 • 92021 (El Cajon) with 34 • 92117 (Clairemont) with 32 • 92024 (Olivenhain), 92026 (North Ridge), 92027 (East Valley), 92058 (Oceanside), and 92065 (Ramona), all tied with 31.

The data shows that these Inland San Diego zip codes draw attention for delivering larger homes at a favorable price point, with a competitive cost per square foot, as buyers seek value in areas that offer more space while remaining accessible to employment centers and amenities.

Market Challenges Persist

Despite July's positive sales figures, the San Diego housing market faces ongoing challenges. Recent reports indicate that June 2025 represented the second-lowest sales month for June in data going back 20 years, highlighting the broader struggles in the market.

Affordability remains a critical issue, with annual household income needed to qualify for a mortgage on a mid-tier California home in June 2025 was about $237,000—over 2 times the median California household income in 2023 ($96,500).

Looking Forward: Expert Forecasts

Industry experts maintain cautiously optimistic outlooks for the remainder of 2025 and beyond. The California Association of Realtors forecasts that existing, single-family home sales are forecast to total 304,400 units in 2025, an increase of 10.5 percent from 2024's projected pace of 275,400. California's median home price is forecast to climb 4.6 percent to $909,400 in 2025.

For San Diego specifically, a reasonable forecast for the San Diego housing market in 2026 would be a period of moderate growth. We could see an increase in home sales and a continued, although slower, rise in median home prices assuming mortgage rates hold steady or decline as predicted.

Market Transformation

The current market represents a significant shift from the highly competitive conditions that characterized much of the post-pandemic period. The San Diego housing market is very competitive. Homes in San Diego receive 3 offers on average and sell in around 32 days, compared to the bidding wars and rapid sales that were common in previous years.

As the market continues to evolve, buyers are finding more leverage while sellers must adapt to longer marketing periods and increased inventory levels. The coming months will likely determine whether July's sales uptick represents a sustainable trend or a temporary deviation from the broader market cooldown.

Sources

  1. City News Service via NBC San Diego. "Despite bad news elsewhere, San Diego home prices, sales up: Median up $15K in July." nbcsandiego.com
  2. California Association of Realtors. "C.A.R. releases its 2025 California Housing Market Forecast." September 25, 2024. https://www.car.org/aboutus/mediacenter/newsreleases/2024-News-Releases/2025forecast
  3. California Association of Realtors. "C.A.R. releases its 2025 California Housing Market Forecast." PR Newswire. https://www.prnewswire.com/news-releases/car-releases-its-2025-california-housing-market-forecast-302256334.html
  4. CBS8 San Diego. "San Diego home sales rise in July amid California dip." https://www.cbs8.com/article/news/local/san-diego-home-sales-defy-statewide-dip-july-surge/509-fb25e265-7998-427b-ab28-e1a89b77f44f
  5. SD Housing Market. "San Diego Housing Market Update — July 2025." https://sdhousingmarket.com/news/housing-market-trends-update-prices-in-san-diego-july-2025/
  6. Norada Real Estate. "San Diego Housing Market: Trends and Forecast 2025-2026." https://www.noradarealestate.com/blog/san-diego-real-estate-market/
  7. Luxury SoCal Realty. "San Diego Housing Market (August 2025 Statistics & Forecast)." https://www.luxurysocalrealty.com/blog/san-diego-real-estate-market/
  8. Redfin. "San Diego Housing Market: House Prices & Trends." https://www.redfin.com/city/16904/CA/San-Diego/housing-market
  9. Rocket Homes. "San Diego, California Housing Market Report July 2025." https://rocket.com/homes/market-reports/ca/san-diego
  10. First Tuesday Journal. "San Diego housing indicators." May 12, 2025. https://journal.firsttuesday.us/san-diego-housing-indicators-2/29246/
  11. SoCal Home Buyers. "San Diego Housing Market Forecast & Trends 2024 & 2025." May 22, 2025. https://socalhomebuyers.com/san-diego-housing-market/
  12. San Diego Union-Tribune. "'This market is brutal right now': San Diego home price down year-over-year, sales near historic lows." August 20, 2025. https://www.sandiegouniontribune.com/2025/08/20/this-market-is-brutal-right-now-san-diego-home-price-down-year-over-year-sales-near-historic-lows/
  13. California Legislative Analyst's Office. "California Housing Affordability Tracker (2nd Quarter 2025)." https://lao.ca.gov/LAOEconTax/Article/Detail/793
  14. Norada Real Estate. "California Housing Market: Forecast and Trends 2025-2026." https://www.noradarealestate.com/blog/california-housing-market/
  15. The Mortgage Reports. "Will Interest Rates Go Down in August? | Predictions 2025." https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional
  16. U.S. News. "2025 Mortgage Rate Forecast: When Will Rates Go Down?" https://money.usnews.com/loans/mortgages/mortgage-rate-forecast
  17. JVM Lending. "California Real Estate Market Forecast for 2025." April 2, 2025. https://www.jvmlending.com/blog/california-real-estate-market-forecast-for-2025/
  18. Sammamish Mortgage. "California Housing Forecast for 2025." January 7, 2025. https://www.sammamishmortgage.com/california-housing-forecast/
  19. Long Forecast. "Mortgage Rates Predictions 2025, 2026, 2027, 2028 and 2029." https://longforecast.com/mortgage-interest-rates-forecast-2017-2018-2019-2020-2021-30-year-15-year
  20. U.S. News. "2025-2030 Five-Year Housing Market Predictions." July 9, 2025. https://realestate.usnews.com/real-estate/housing-market-index/articles/housing-market-predictions-for-the-next-5-years
  21. Despite bad news elsewhere, San Diego home prices, sales up: Median price up $15K in July – NBC 7 San Diego

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