If you were watching the San Diego housing market in 2025 and thinking, “Okay… so is this getting better or worse?” you were not alone.
2025 was one of those years where the headlines did not always match what it felt like on the ground. Prices did not fall off a cliff, but the market absolutely changed. Homes took longer to sell, buyers got pickier, and sellers had to work harder to get the result they wanted.
Here’s the simplest way to say it.
San Diego did not correct through price. It corrected through time.
What changed in 2025
A lot of people expected either a big drop or a big rebound. Instead, 2025 was more like a slow recalibration.
Prices held surprisingly steady, but the pace of the market slowed down. That matters because a slower market gives buyers more time to think, and it forces sellers to be more strategic. It also changes the emotional temperature. The urgency eased up.
And when urgency disappears, pricing and presentation start to matter again.
Detached homes: steady prices, slower decisions
Let’s talk detached homes first, because that is what most people picture when they think “San Diego real estate.”
Over the rolling 12 months through December 2025, the median detached sales price landed around $1,030,000. That was up only 0.5% year over year, which is basically flat. The average sales price was about $1,383,115, up 1.7%. So yes, prices held.
But buyers were not moving at the same speed.
The typical detached home took about 31 days to sell, which was a 24% jump in days on market compared to the prior year. In a place like San Diego, that shift is noticeable. It means buyers were comparing options, watching price changes, and asking more questions before committing.
That slower pace showed up in negotiations too. Detached homes sold for about 99.1% of list price on average, down from 100% the year before. And the percentage of the original list price received slipped from about 99.0% down to 97.7%. Those are not dramatic drops, but they are meaningful. They tell you buyers were no longer willing to overpay just to “win.”
The part that surprises people: inventory tightened
Here’s what most people miss when they only focus on days on market.
Even though the market felt slower, supply stayed tight. In fact, it tightened toward the end of the year. In December 2025 compared to December 2024, detached inventory was down about 25%, sitting around 2,303 homes for sale. Months of supply was only 1.8 months.
That is still a low-supply environment.
So while buyers got breathing room because homes were taking longer to sell, there were still not enough homes to create a true price collapse. That is a big reason detached prices stayed relatively stable.
Attached homes: a softer feel, especially on demand
Condos and townhomes, or attached homes, told a slightly different story.
Over the rolling 12 months through December 2025, the median attached price was about $669,900, essentially flat, down just 0.2%. The average sales price was around $816,285, up about 1.5%. So values did not fall hard, but demand softened. Closed sales were down about 3.6% and pending sales were down about 3.3% over the year.
And attached homes took longer to sell than detached homes. Days on market averaged about 36 days, up roughly 33% from the prior year.
That is the “time correction” again.
Buyers had more choices in many condo and townhome communities, and they acted like it. They were selective. They negotiated. They walked away if the numbers did not work.
Even in attached housing, supply did not explode
This is another nuance that matters.
In December 2025, attached inventory was about 1,541 units, down roughly 16% year over year. Months of supply was around 2.3 months. That is more than detached, but it is still not an oversupply situation.
So the attached market felt softer, but it was not flooded.
What this means if you are buying in 2026
If you are a buyer, 2025 was the year where normal buyer behavior finally started to come back.
You could take a breath.
You could tour a few homes and not feel like you had to write an offer from the driveway. You could ask for repairs or credits, and more sellers were willing to have that conversation. You could walk away if it did not feel right, without worrying that the same house would be gone in 20 minutes.
The biggest win for buyers was not necessarily lower prices. It was time and leverage.
What this means if you are selling in 2026
If you are a seller, 2025 proved that you can still get a strong result in San Diego.
But you cannot rely on momentum alone.
Homes that sold well usually did three things: they looked great, they were priced correctly from the start, and they were marketed with intention. Buyers noticed stale listings. They noticed price reductions. They noticed when a home felt “overpriced for the condition.”
And they were willing to wait.
My takeaway
2025 was not a crash year. It was a transition year.
Prices held up because supply stayed tight, but the market slowed down because affordability was still a challenge and buyers became more careful. That combination creates a very specific kind of market. If you understand it, you can make smart moves, whether you are buying, selling, or just planning ahead.
If you're curious what your property would sell for in today's market. Reach out to me at 858-335-4597. I'd be happy to give you an honest (no sales pitch!, no obligation) home valuation.
Until next week's San Diego Housing Market Mondays!
