San Diego Real Estate Market Overview & Forecast (2025 & 2026) | The Luxury Playbook

As of Q1 2025, the San Diego real estate market is experiencing a healthy reset, with a median listing price of $949,000, down 2. 1% year-over-year. Inventory has improved, with an average of 1,991 active listings, a 9. 5% increase from last year, allowing buyers a broader selection. The average days on market is 32, showing a fast-moving environment despite longer timelines than previous years.

Approximately 41% of homes are selling above asking price, indicating continued competition in specific submarkets. Investors are navigating challenges with rental yields but still find opportunities in the market. The dynamics of the San Diego housing market reflect strong fundamentals and lifestyle-driven demand, supporting pricing and competitiveness.