San Diego Market Update: Summer Trends & The 3 Real Estate Micro-Markets
Summer in San Diego is in full swing, from beach days in Del Mar to neighborhood street fairs, it is a great reminder of why we love living here. It is also peak real estate season, as buyers aim to get settled before the new school year and parents secure housing for college students near SDSU and UCSD.
If you are following national headlines, it is easy to get a distorted view of real estate. But boots-on-the-ground in San Diego, the reality is clear: we are navigating three completely distinct micro-markets.
San Diego’s 3 Local Markets
1. Single-Family Homes: High Demand & Steady Growth
The single-family market remains tight and competitive, delivering ~5% year-over-year growth.
The Data: Active listings are down 26.1%, leaving a razor-thin 2.4-month supply. Homes average 32 days on market, holding the median price firm at $1,125,000.
Seller Strategy: Turnkey properties win. Finishing touches, fresh paint, deep cleaning, and staging, unlock top dollar. We recently put two listings under contract over asking price in their first weekend.
2. The Luxury Market: Record-Setting Pace
Matching single-family performance, San Diego’s luxury segment is tracking ~5% year-over-year growth with record-setting sales across the county, demonstrating deep buyer confidence in local long-term value.
3. Condos & Townhomes: Real Opportunity for Buyers
The attached market saw a noticeable shift starting around April/May.
The Data: While broad county averages claim prices are up 1%, local neighborhood data reveals a 1% to 5% price adjustment back toward 2021 levels. Inventory sits at a balanced 4.0-month supply with an average of 43 days on market and a flatlined median price of $670,000.
Buyer Strategy: Take advantage of the extra breathing room to negotiate price, repairs, and seller credits.
Seller Strategy: Price aggressively. If you don't need to sell immediately, consider holding for a year or two until the condo space firms back up.
The Reality Check & Macro Picture
No Crash Looming: Headlines love drama, but as analysts at HousingWire Daily note, you cannot have a price crash without a massive wave of forced sellers. With local single-family inventory down 26% and local equity high, values remain secure.
Rates & Affordability: The 30-year fixed rate is holding around 6.49%. While traditional affordability is tight, creative deal structures, like custom builder rate buy-downs and buyer incentives, are enabling our clients to secure monthly payments well below current market rates.
The Bottom Line
San Diego real estate is not one-size-fits-all. Whether you are navigating competitive single-family listings or looking for value in the condo market, an intentional strategy makes all the difference.
Reach out anytime, I am always here to help you evaluate your home’s value or map out your next move with total clarity.
- Greg
