San Diego is moving from the spring real estate market into the summer market, and like most seasonal shifts, the pace is changing.
That does not mean the market has stopped.
It means the market is asking buyers and sellers to be more thoughtful.
The biggest issue right now is still affordability. Rates moved up quickly in 2022 and have stayed much higher than many buyers hoped. Add that to home prices, insurance, HOA costs, and the general cost of everyday life, and it makes sense why buyers are moving more carefully.
People are still buying.
People are still selling.
But the easy money, low-rate, throw-it-on-the-market-and-watch-it-fly season is not the market we are in today.
What We Are Watching in San Diego County
Here are a few key points from the current market:
- Inventory has increased slightly. San Diego County is sitting around 5,600 active homes on the market, still slightly below where we were last year.
- Buyer demand is steady, but not surging. Pending sales are basically unchanged month over month.
- Market time is rising slightly. The expected market time countywide moved from about 80 days to 83 days.
- Detached homes are moving faster than condos. Detached homes are sitting around 76 days of expected market time, while condos have moved closer to 110 days.
- Distressed sales are still very low. Short sales and foreclosures make up a very small part of the market, and about 99% of closed sales are still homeowners selling with equity.
That last point matters.
A slower market is not the same thing as a crash.
A crash usually requires major distress, forced selling, or a large imbalance in supply and demand. That is not what we are seeing in San Diego County right now.
What we are seeing is a more balanced market where affordability is pressing on demand, buyers are more selective, and sellers need to be more strategic.
What This Means for Buyers
Buyers may have more room to negotiate than they did a few years ago.
That could mean asking for seller credits, negotiating repairs, exploring a rate buydown, or simply having more time to make a decision. In some cases, buyers are not having to compete against the same level of multiple-offer pressure we saw during the COVID-era market.
But that does not mean every home is a deal.
Well-priced homes in desirable locations can still move quickly. The key is understanding the local pocket, the property type, and the seller’s situation.
A detached home near schools, employment, or military bases may behave very differently than a condo with a high HOA, insurance concerns, or project-level lending issues.
What This Means for Sellers
For sellers, the market is still active, but strategy matters more.
Price matters.
Presentation matters.
Access matters.
Terms matter.
The days of putting a home on the market with limited preparation and expecting a bidding war are not the norm anymore. Some homes are still selling quickly, but buyers are more sensitive to condition, pricing, monthly payment, and overall value.
If a property is overpriced, difficult to show, poorly presented, or not positioned well against the competition, the market will usually let us know.
What This Means for Homeowners
Not every homeowner needs to sell.
For some people, staying put and renovating may make more sense than moving. For others, built-up equity may create options for remodeling, helping a family member, purchasing a second home, or investing.
That is why real estate is never one-size-fits-all.
There is your goal, your timeline, your financial picture, your local market, and the options available to help get you there.
Final Thought
The San Diego market is slower than the frenzy of a few years ago, but it is not stopped.
- Affordability is the biggest challenge.
- Inventory is improving slightly.
- Demand is steady.
- Distressed sales remain low.
This is not a panic market. It is a strategy market.
Stephanie Rivera is a Broker Associate and co-owner of Legacy Realty Network, a real estate team serving San Diego County and Southern Riverside County. Known for her strategic insight, genuine care, and advocacy-first approach, Stephanie helps clients think through both the transaction in front of them and the long-term wealth they are building. If you are ready to buy, sell, invest, or plan your next move, reach out to our team today.
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