San Diego’s housing market is seeing a noticeable shift as more homeowners list their properties at reduced prices.
According to Realtor.com, the median listing price in San Diego dropped 4.8 percent year-over-year as of the week of March 8, 2025.
At the same time, active listings surged by 63.8 percent compared to last year, signaling that many homeowners are choosing to sell — even if it means settling for lower prices.
Despite concerns about recent federal layoffs potentially impacting housing in metro areas with high federal employment, including San Diego, the city has yet to show significant changes tied to those job cuts.
Nationally, the trend is similar, with inventory up 27.8 percent and homes taking four days longer to sell than they did a year ago.
Realtor.com also highlights that the upcoming week of April 13 is projected to be the best time to sell, thanks to a seasonal boost in buyer demand and reduced seller competition.
Recently, San Diego was listed as one of the top hottest housing markets, coming in at number 19 above Los Angeles and San Francisco, according to Zillow.
This recent trend in the San Diego market may reflect broader patterns across California.
San Diego’s housing market is seeing a noticeable shift as more homeowners list their properties at reduced prices
This recent trend in the San Diego market may reflect broader patterns across California
According to Realtor.com, the median listing price in San Diego dropped 4.8 percent year-over-year as of the week of March 8, 2025
The supply of homes listed for sale in California is surging, rising 44 percent in February compared with a year ago, according to data from the Realtor.com economic research team. The national increase was just 28 percent.
The California surge is the fourth-largest annual increase in active listings among the states, behind only Nevada, Hawaii and Colorado.
Rising inventory is usually an early warning sign of weaker price growth, as supply begins to outpace demand, leaving buyers with more options and forcing some sellers to make concessions.
Nick Gerli, founder and CEO of the real estate data startup Reventure App, highlighted in a recent post on X that five of the top 11 U.S. cities for annual inventory growth are located in California.
This includes San Diego, where active listings have increased by 61 percent compared to last year.
‘It’s very realistic to expect that, based on the more than 50 percent year-over-year inventory increase in some of these California markets, we’re going to see a big slowing in home price growth over the next 12 months,’ Gerli told Realtor.com.
‘I wouldn’t be surprised if prices trend flat across the state or even slightly negative by the end of the year, and particularly in certain markets,’ he adds.
Some California markets might have also hit an ‘affordability wall’ on home prices, notes Gerli.
Pictured: A chart detailing the home listing prices in California between 2017 and 2025
At the same time, active listings surged by 63.8 percent compared to last year, signaling that many homeowners are choosing to sell—even if it means settling for lower prices (Price of house: $639,800)
Nationally, the trend is similar, with inventory up 27.8 percent and homes taking four days longer to sell than they did a year ago (Price of house: $949,000)
In San Diego, for example, the median February list price of more than $948,000 is far out of reach for a family making the local median household income of about $104,000.
Still, Gerli says the rising inventory warning comes with an important caveat: California’s housing supply is expanding from a state of severe shortage, and today just 0.6 percent of the state’s homes are on the market.
Statewide, housing inventory remains well below pre-pandemic levels.
Gerli doesn’t anticipate a dramatic price correction in California, but rather a more gradual market reset, supported by low unemployment and mortgage default rates in the state.