Current prices, inventory, interest rates, and the real answer to "is now a good time to buy?"
San Diego's real estate market remains one of the most resilient in the country. Despite elevated interest rates, limited inventory continues to support prices — and buyers who wait for a big correction may be waiting for a long time. Here's the current state of the market.
Slowly. San Diego has been chronically undersupplied for years. New construction is adding some inventory in areas like Otay Ranch (Chula Vista) and Millenia, but the overall supply remains well below historical norms. This keeps prices supported.
Prices have held firm throughout the rate-increase cycle. San Diego didn't see the corrections that hit other metros. Year-over-year, most areas are flat to modestly up. The floor has held — a major crash is not expected given San Diego's structural supply constraints.
The Federal Reserve began cutting rates in late 2024. Most forecasters expect rates to continue gradually declining through 2025–2026. Waiting for rates to drop significantly before buying may mean competing with more buyers — and higher prices — when they do.
A mild seller's market in most areas under $800K. Multiple offers are still common in Chula Vista, La Mesa, and Santee. Above $1M, it's more balanced with more negotiation room. The best-priced, well-maintained homes still move fast.
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