News Summary
Home sales in San Diego County saw a 9% drop in May compared to the previous year, marking a significant downturn in the housing market. Despite a decrease in sales, the median home price remained stable at $900,000. With high mortgage rates continuing to put pressure on potential buyers, the market shows signs of caution. The median days on the market for homes have increased, highlighting ongoing affordability challenges and a competitive landscape among sellers.
San Diego
Home sales in San Diego County experienced a significant decline in May, with total transactions reaching 2,384—a drop of 9% compared to the same month last year. This downturn echoes the housing market’s struggles during the Great Recession, where sales figures were higher in May 2008 (3,140) and May 2009 (3,250). Nationally, the housing market is also feeling the strain, with an 11% decrease in home sales on average across the United States.
As mortgage rates continue to remain high, many potential buyers are sidelined, leading to reduced sales activity. Sellers are hesitant to lower their asking prices, further complicating the market dynamics. The average mortgage interest rate for a 30-year fixed-rate mortgage was recorded at 6.89% in the final week of May, pushing the monthly payment for a median-priced home to around $5,100, assuming a 20% down payment of $180,000.
Despite the decrease in sales, the median home price in San Diego County has held steady at $900,000 for the second consecutive month. This figure marks a slight annual decline of 0.2% and indicates the first annual decrease since May 2023. The median home price accounts for closed transactions across various property types, including single-family homes, townhouses, and condos.
The extended duration of time it takes to sell homes is also notable; the median days on the market rose from 16 days last year to 25 days in May. A total of approximately 6,800 homes were listed for sale in May, a significant increase from the 4,800 listings in 2024 and only 3,200 in 2023. The median sale price for single-family homes in May was recorded at $1 million, reflecting an annual increase of 1%, while the median price for condos and townhouses saw a decline of 2.7% to $681,000.
San Diego ranks as the 10th most unaffordable metropolitan area in the world for home purchases, according to the Demographia International Housing Affordability report. This report assessed median housing prices in relation to median household income, placing several California cities, including Los Angeles and San Francisco, on the list of unaffordable markets. When comparing median home prices with neighboring areas, Los Angeles County’s median price reached $915,000 and Orange County’s soared to $1.2 million. In contrast, Riverside County’s median price dipped to $599,000.
In further context, the total home sales figure for San Diego County saw a slight decline of 3.9% from May but appeared to be up 0.7% from June 2024. As of June, the median sale price of an existing single-family home in the area had dropped to $1.025 million from the previous month’s figure of $1.05 million and was also lower compared to June 2024’s $1.054 million. Looking at state data, California’s median home price was noted at $899,560 in June, reinforcing the downward trend observed statewide.
Overall, the current landscape of the San Diego housing market indicates a cautious environment for both buyers and sellers, largely driven by high mortgage rates and ongoing affordability challenges.
Deeper Dive: News & Info About This Topic
HERE Resources
Coronado Increases Housing In-Lieu Fee for Developers
California Business Landscape: Trends and Challenges
California’s Recent Developments in Business and Entertainment
Exploring Family-Friendly Coronado Island in San Diego
Coronado Hosts STEM Show for Families
Challenges in San Diego’s Rental Landscape
Coronado City Council Allocates Community Grants to Nonprofits
Coronado Unified School District Addresses Budget Concerns
Fourth of July Celebrations in San Diego County
Coronado City Council Approves Community Grants
Additional Resources
- San Diego Union-Tribune: Home Sales Tumble
- 10 News: Home Sales Decline in San Diego
- Patch: Home Sales Report in San Diego
- Redfin: Home Price Index June 2025
- NBC San Diego: Housing Market Cooling Signs
- Wikipedia: Housing Market
- Google Search: San Diego Housing Market
- Google Scholar: San Diego Housing Market
- Encyclopedia Britannica: Housing Market
- Google News: San Diego Housing Market
