News Summary
In a surprising development, home prices in San Diego remained flat in April, marking nearly two years without an increase. The median home price held steady at $900,000, causing concern among buyers amid economic uncertainty. Although sales increased with 2,623 homes sold, inventory remains low compared to historical averages. Active developments have decreased, while affordability issues continue to challenge prospective homeowners, prompting calls for zoning reform and potential tax relief.
San Diego – In a surprising turn for the housing market, home prices in San Diego remained stagnant in April 2025, marking the first instance of no increase in price in nearly two years. The median home price held steady at $900,000, a figure that has not changed since prices were last flat in May 2023 when they experienced a decrease of 1.64%. This stagnation comes amid increased buyer uncertainty regarding the economy, including volatility in the stock market and potential tariffs, which have contributed to a decline in competitive bidding among buyers.
The market is currently showing signs of slow movement, with homes taking longer to sell. In April 2025, the median time a home spent on the market reached approximately 20 days, the longest duration seen in years. Although sales showed a promising uptick, with 2,623 homes sold in April—a 14.1% increase from the previous year—the increase in inventory remains insufficient compared to historical averages. The number of available homes for sale rose to about 5,760 this April from 4,190 during the same time last year, yet it peaked at 6,377 in early June 2025.
Despite general sales growth, the total number of active developments has dwindled to 50, the lowest figure in a decade. Homes priced below the median, for instance, are still witnessing quick sales, as evidenced by a property in Ramona that received multiple offers despite its listing price of $779,000 and ultimately sold for $800,000. Conversely, luxury listings are spending a more extended period on the market, signaling a shift in buyer preferences.
The average interest rate for a 30-year fixed mortgage stood at 6.81% during the last week of April, with buyers needing to make significant financial commitments. For those placing a 20% down payment, monthly housing costs exceed $5,000, presenting a challenging barrier for many potential homeowners. Real estate analysts note that while there are more buyers than sellers, the persistent worries over housing prices hinder buyer confidence.
In the broader regional context, median sale prices for single-family homes in San Diego saw a decline of 2.9% from the previous year, resting at $990,625, while condos and townhouses remained stable at $695,000. Other Southern California counties display varied trends; Los Angeles County’s median was $890,000 (down 1.1%), Orange County reported $1.2 million (down 0.8%), Riverside County’s increased to $608,000 (up 1.2%), San Bernardino County at $530,000 (up 0.6%), and Ventura County at $875,000 (up 1.3%).
The stability experienced within the San Diego housing market is being tempered by growing concerns around affordability, which remains a persistent barrier for many prospective buyers. Local advocates are now calling for reforms in zoning laws to enhance access to homeownership for younger generations. Additionally, a proposed tax bill in Congress aims to provide relief by increasing the SALT deduction limit from $10,000 to $40,000, which could offer financial relief to homeowners facing higher costs.
Overall, the San Diego housing market’s stagnation may hint at deeper issues within the economy, showcasing the challenges faced by buyers and sellers alike as the landscape continues to shift.
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Additional Resources
- San Diego Union Tribune
- Wikipedia: San Diego
- NBC San Diego
- Google Search: San Diego housing market
- 10 News
- Google Scholar: San Diego housing market
- Redfin
- Encyclopedia Britannica: San Diego housing
- The Mortgage Reports
- Google News: San Diego home prices
- CBS 8
