San Diego County

MARKET OVERVIEW
As competition intensifies, 2025 is proving to be notably less favorable for sellers than the previous year. Buyer demand remains relatively unchanged, while inventory has seen a significant increase. In May, pending sales of detached homes dropped by 3.7%, while inventory surged by 25.6% compared to the same period last year. For attached homes, pending sales fell by 9%, and inventory rose sharply by 49.8%. With demand likely peaking in March, inventory is expected to continue rising through the summer months. The market is projected to cool gradually each week, with inventory likely reaching its peak later in the year.

MONTHS SUPPLY OF INVENTORY
Historically, a 4–6 Months Supply of Inventory (MSI) has been associated with a neutral market — one that doesn't favor either sellers or buyers. A supply of less than 4 months generally favors sellers, while more than 6 months usually favors buyers. MSI can vary significantly between locations, property types, and, as illustrated in the chart below, across different price ranges.

SELLING TODAY
As sellers face the slowest spring market since the COVID lockdown in 2020, careful and deliberate pricing is essential for success. Luxury home sellers, in particular, must tune out the noise suggesting a seller's market in lower price ranges and instead take a calculated approach to the selling process—emphasizing smart pricing, exceptional marketing, and patience.

Charts provided by the Greater San Diego Association of Realtors®. All data from the San Diego MLS. Residential real estate activity in San Diego County comprised of single-family properties, townhomes, and condominiums. Percent changes are calculated using rounded figures. Information deemed reliable but not guaranteed.

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