San Diego Real Estate Market Update: Trends to Watch in February 2025

As we step into February 2025, the San Diego real estate market continues to show dynamic shifts influenced by economic trends, interest rates, and seasonal factors. Whether you're a buyer, seller, or investor, staying informed can help you make smarter decisions. Here’s what you need to know this month:

1. Home Prices Are Stabilizing

After a period of rapid growth, home prices in San Diego are starting to stabilize. While we’re not seeing the aggressive bidding wars of previous years, demand remains strong, especially in sought-after neighborhoods like North Park, Carmel Valley, and La Jolla.

• Median Home Price: $951,513

• Year-over-Year Change: 7.2%

2. Inventory is Slowly Increasing

Buyers will be pleased to know that inventory has been gradually rising. This shift gives buyers more options and slightly more negotiating power than in 2021-2023. However, San Diego remains a competitive market overall.

• Active Listings: 2,511

• Months of Inventory: 4-5

3. Interest Rates Remain a Key Factor

Interest rates continue to play a significant role in buyer behavior. While rates have fluctuated, they’re currently [Insert current rate]% for a 30-year fixed mortgage. This has led some buyers to adjust their budgets, but demand for homes remains resilient.

4. Hot Neighborhoods to Watch

Certain neighborhoods are experiencing a surge in interest due to lifestyle appeal, amenities, and investment potential:

• Encinitas: Great for coastal living enthusiasts

• South Park: Popular for its walkability and historic charm

• San Marcos: Growing rapidly with family-friendly communities

• Chula Vista: A thriving community in South County known for its waterfront developments, family-friendly neighborhoods, and vibrant cultural scene

5. What This Means for Buyers and Sellers

• For Buyers: You have more choices and slightly less competition, but acting quickly on desirable properties is still key.

• For Sellers: Pricing your home competitively and ensuring it shows well can help attract serious buyers in this shifting market.

Let’s Talk About Your Real Estate Goals

If you’re thinking about buying, selling, or investing in San Diego, now is a great time to strategize. Every market presents opportunities—let’s find the right one for you.

Ready to make your move? Contact me today to get started!