The California housing market experienced a slowdown for the third consecutive month in May, with both home sales and prices showing a decline. This trend was reported by the California Association of REALTORS® (C.A.R.), highlighting some challenges and opportunities in the market.
In May 2025, the sales of existing single-family homes in California reached an annualized rate of 254,190, a drop from April’s numbers. The median home price statewide was $900,170, which is slightly lower than the previous month.
San Diego’s Real Estate Snapshot:
• Home Prices: In San Diego, the median home price saw an increase, rising to $1,050,000 in May from $1,015,000 in April. This indicates a month-to-month growth of 3.4% and a year-over-year increase of 2.4%.
• Sales and Inventory: However, home sales in San Diego decreased by 7.3% from April and 4.6% compared to last year. The Unsold Inventory Index (UII), which measures how many months it would take to sell all the homes currently for sale, rose to 3.4 months in May, up from 2.9 in April.
• Market Dynamics: May’s market showed that homes in San Diego are taking slightly longer to sell, averaging 18 days on the market, compared to 12 days the previous year.
Despite these challenges, the sentiment among potential buyers is improving, with more people understanding that now is a good time to buy. Lower home prices and an increase in available homes present a unique opportunity for buyers to find properties that meet their needs at more affordable prices.
What’s Next?
There is optimism that if economic conditions stabilize, the housing market could see a rebound in the latter half of the year. Buyers may benefit from price reductions and a larger selection of homes. The key will be for mortgage rates to stabilize to help restore buyer confidence.
For anyone considering purchasing a home in San Diego, now might be a strategic time to explore the market, given the current conditions and positive outlook for price stabilization and inventory growth.
Discover how these shifts can benefit you with guidance as a home buyer or seller. I, Shirin Rezania Ramos, a CA licensed real estate broker will help you achieve your real estate goals. Reach out today to explore your options!
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
