'Buyers have decided prices went up too much, too fast': San Diego's home market still sluggish

San Diego County's median home price was $900,000 in May

Homes in La Jolla in early February. San Diego County's home market remains sluggish. (K.C. Alfred / The San Diego Union-Tribune)

San Diego County's home price has been unchanged for a year, a rarity in the typically supercharged Southern California market.

The median home price was $900,000 in May, said Attom Data Solutions, unchanged from last year and down 0.6% in a month. The median, which combines sales of single-family homes, townhouses and condos, hit a high of $914,000 in June 2024.

For recent homeowners, the price means gains were likely eaten up by inflation. For potential buyers, it's at least a change from frequent price gains, but mortgage rates may still be a deterrent.

Karen Van Ness, president of the Greater San Diego Association of Realtors, said hesitance from buyers is a hangover from explosive price gains during the pandemic. San Diego County's median home price has risen 24% since May 2021.

"Buyers have decided prices went up too much, too fast," she said.

There were 3,232 home sales in May, down from the doldrums of 2024 and 2025, but still historically low. For instance, in May 2021, there were 4,124 home sales.

Van Ness said it is difficult to convince sellers that the market has changed from a few years ago, and they often insist on higher listing prices. There is evidence that homes are taking longer to sell. The Redfin Data Center said San Diego County homes in May were on the market a median of 33 days, near a five-year high. That compared with 32 at the same time last year, 22 days in 2024, and 17 in 2023.

Redfin said about 31% of all listed San Diego County homes sold above asking price, which might sound high but is substantially down from past years. For instance, in May 2022, 61% of all listed homes sold above asking price.

Mark Goldman, a real estate analyst with C2 Financial Corp., said May is typically a kickoff to the busy summer real estate season. He said it wasn't as if home prices and sales crashed, but it was hard not to notice the market was sluggish for that time of year.

"The market was slow," Goldman said. "It wasn't declining. But the meter was turning more toward a buyer's market."

Potential buyers have a lot more to choose from these days. In May, there were 8,248 homes listed for sale, which would have been unheard of a few years ago. Home inventory in San Diego County hit a record low of 4,371 in August 2023, based on Redfin data going back to 2018.

Goldman said mortgage rates haven't helped the real estate market. The average 30-year, fixed-rate mortgage was 6.53% at the end of May, said Freddie Mac. That was up from a three-year low of 5.98% in February.