San Diego Housing Market Cools After Pandemic Boom

The San Diego housing market, after experiencing a substantial pandemic-induced surge, is now showing signs of stagnation. Median home prices, which soared from $660,000 in January 2020 to $860,000 in January 2022, have seen a decline for the fifth consecutive month as of October 2025. This cooling trend is particularly noticeable in premium suburban neighborhoods.

Housing inventory in San Diego has nearly doubled from approximately 1.7 months of supply in early 2024 to three-and-a-half months by mid-2025. Despite this increase in available homes, demand has softened, resulting in properties remaining on the market for considerably longer periods. Homes that once sold in under a month are now taking 30 to 38 days to sell.

Buyers are hesitant, anticipating further price drops, while many sellers are reluctant to list due to low mortgage rates secured previously. Although a recent slight decrease in mortgage rates in October 2025 slowed the rate of decline compared to September, it has not spurred a significant increase in sales. Experts predict these rates may offer support to the market in 2026.