Market truth? San Diego's housing market just shifted — and most agents are still chasing yesterday's playbook.
Here's what everyone's missing about San Diego housing market trends in 2025. The Cassity Team has been tracking every pulse point through our exclusive network of 28,000+ agents, and the story emerging is far more strategic than most realize.
"San Diego's 2025 marketplace pulse shows resilience amid shifting buyer patterns — smart money follows the data, not the headlines." — Tweet this
The problem with surface-level market reports
You've heard the conflicting narratives. One day it's "buyer's market," the next it's "prices soaring." Here's what's actually happening in San Diego's housing market trends — and why this matters for your next move.
The Cassity data story unfolds
Last month, Sarah walked into our office convinced she'd missed her window to sell in Rancho Penasquitos. She'd been reading generic market reports suggesting doom and gloom.
Normal situation: Panic about selling. Explosion moment: We showed her our network data. New normal: Strategic pricing led to multiple offers above ask.
The Greater San Diego Association of REALTORS® (SDAR) reports that the overall median sales price for residential properties in San Diego County reached $900,000 in May 2025, marking a 2.9% increase over the previous month. But that's just the beginning of the story The Cassity Team's clients need to know.
Current Market Snapshot:
â– Median home prices: Single-family homes $1,399,000 • Condos $699,000
â– Days on market: 49-70 • Price reductions on 36-44% of listings
â– Inventory surge: For-sale inventory in San Diego for February 2025 averaged a significant 39% above a year earlier
â– Sales volume: In early 2025, the number of homes sold was down about 7–8% compared to a year prior. For example, in February 2025 roughly 1,684 single-family homes sold, versus 1,824 in Feb 2024
This isn't your typical "cooling" market story — it's a strategic repositioning.
Interest rate reality check
Let's address the elephant reshaping every conversation. As of August 21, 2025, the average 30-year fixed mortgage rate is around 6.58%, and the 15-year is about 5.69%.
Here's where The Cassity Team's strategic intelligence becomes crucial — we're not just watching rates, we're positioning for the rebound.
The Forward-Looking Picture:
➜ Mortgage rates: Expected to average 6.4% in the second half of 2025 and potentially drop to 6.1% in 2026
➜ He calls low mortgage rates the "magic bullet" to increasing market activity
➜ Strategic timing matters more than waiting for "perfect" conditions
The Cassity Team's clients who moved strategically in early 2025 are already positioning themselves for the rate environment shift ahead.
Inventory explosion creates strategic windows
Remember when finding a home to buy meant competing with 15 other offers? Those days shifted, creating opportunities for smart players in The Cassity Team's network.
Inventory has grown 47% year-over-year, creating more balanced conditions, but here's what generic reports miss — this creates differentiated opportunities based on price point and location.
Strategic Positioning by Segment:
â–¶ Under $1M: More negotiation power, longer inspection periods
â–¶ $1M-$2M: San Diego's market shows remarkable stability over the past 12 months with only 2.5% appreciation
â–¶ Luxury $2M+: San Diego's luxury market (homes $2M+) shows unique resilience in 2025 with median luxury home price at $3.2M (up 8.5% YoY), 45 days on market, and 68% cash buyers. While sub-$1M market has softened, luxury inventory remains scarce with only 320 active homes above $2M
The Cassity Team's access to off-market listings becomes even more valuable when public inventory climbs — because the best opportunities often never hit mainstream platforms.
Rental market dynamics support investment thesis
For investors in The Cassity Team's portfolio, the rental landscape presents compelling fundamentals that support long-term value creation.
As of July 2025, the median rent for all bedroom counts and property types in San Diego, CA is $2,800. This is +44% higher than the national average.
Investment Intelligence:
â– Rental yield calculations: Houses for rent in San Diego, CA are more expensive, with an average monthly cost of $4,150
â– Demand drivers: Rental demand continues to rise, driven by constrained housing supply, population inflows, and elevated mortgage rates that are delaying homeownership for many residents
â– Market positioning: Rising rental prices make single-family and multifamily properties attractive for strategic acquisitions
Neighborhood spotlight: Where smart money moves
Not all San Diego neighborhoods are moving at the same pace — and that's exactly where The Cassity Team's hyperlocal intelligence creates advantages.
High-Activity Zones Showing Resilience:
â–¶ Coastal premium areas: Homes in coastal neighborhoods especially remain in high demand from both local move-up buyers and relocators drawn by the beach lifestyle. It's common for desirable listings in these areas to receive multiple offers and sell above list
â–¶ Inland value plays: In more affordable communities farther from the coast – for instance, parts of Escondido, El Cajon, National City – prices are lower but buyers here are very cost-sensitive
â–¶ School district premiums: Homes in top-rated school districts (9+ rating) command 25-57% price premiums. Properties within 0.5 miles of 9+ rated elementary schools appreciate 2.3% faster annually than district averages
The Cassity Team's strategic approach means matching client objectives with neighborhood-specific opportunities rather than generic market advice.
2025 forecast: Strategic intelligence drives decisions
Looking through The Cassity Team's analytical lens — and frankly, my track record isn't perfect, but our network intelligence gives us edges others miss — here's what the data suggests for strategic positioning:
Projected Marketplace Evolution:
â–¶ Existing Home Sales: He expects a 6% rise in 2025 and a whopping 11% jump in 2026. That would be a great recovery! New Home Sales: Projected to increase by 10% in 2025 and 5% more in 2026
â–¶ Median Home Prices: Forecasted to rise by 3% in 2025 and 4% in 2026
â–¶ International influence: International buyers represent 35% of luxury purchases above $3M, with Canada (28%), China (22%), Mexico (18%), UK/Europe (15%), and Middle East (10%) leading. They prefer La Jolla, Coronado, and Rancho Santa Fe, averaging $4.2M purchases (vs $2.8M domestic) with 85% paying cash
Your strategic advantage: The Cassity difference
This data isn't just numbers — it's competitive intelligence for making informed moves in San Diego's evolving marketplace pulse.
Normal approach: Wait for "perfect" market conditions. Explosion insight: Market conditions are always imperfect — strategy wins. New normal: The Cassity Team's network provides intelligence others can't match.
Whether you're buying your first home, selling to capitalize on equity, or building an investment portfolio, The Cassity Team's access to Real brokerage's 28,000+ agent network provides market insights and off-market opportunities that create competitive advantages.
Ready to leverage this intelligence for your strategic move?
The marketplace pulse shows opportunity for those who move with data-driven intelligence rather than headline-driven emotion. Let's schedule your strategic consultation with The Cassity Team today — because in San Diego's housing market trends, timing and intelligence create wealth.
Book Your Strategic Consultation Now →
The Cassity Team specializes in strategic negotiations and comprehensive marketing across multiple platforms. Connect with Jason Cassity and team for expert guidance through San Diego's dynamic real estate landscape at thecassityteam.com.
