San Diego Housing Supply on the Rise – July 2025

Active listings up 28.7% year over year, with condos/townhomes +38.1% and single-family +22.8%

Prepared for San Diego homeowners, buyers, and investors by The Lewis Team at Real Broker.

San Diego’s housing market continued to rebalance in July 2025. Inventory rose sharply, days on market stretched, and sellers gave back a little pricing power—yet median prices held firm, with single-family homes posting modest gains. Here’s what changed, what held steady, and how to use these trends to your advantage right now. 

At-a-glance: Countywide Highlights (rolling 12 months through July)

  • Prices: Overall median up 1.7% to $900,000; single-family median up 2.4% to $1,050,000; condo-townhome median flat at $670,000.

  • Activity: Pending sales +3.0%; closed sales +2.7%.

  • Inventory: Active listings +28.7% year over year (biggest build in condos/townhomes at +38.1%).

  • Months’ Supply: Market-wide supply climbed to 3.4 months (SFH 3.1, condos 4.0).

  • Speed: Days on market lengthened to 36 (SFH 34, condos 38).

  • Negotiability: Average sale-to-original list price eased to 98.1% (from 99.6% last year).

Pricing: Firm but not frothy

  • Single-family homes led price gains, up 2.4% to a $1.05M median. Larger homes (3,001–4,000 sq. ft.) saw the strongest appreciation at +6.1% year over year—a sign move-up buyers are active again.

  • Condos/townhomes were flat at $670,000, reflecting more supply and price sensitivity at entry and mid tiers.

  • Overall county median settled at $900,000 (+1.7%), suggesting steady, not speculative, pricing.

What it means: Sellers still have leverage in well-priced, move-in-ready listings—especially single-family—while condos are giving buyers more negotiating room without broadly resetting values.

Demand: Stable with strength at the upper-middle and luxury tiers

  • Pending sales countywide rose 3.0%.

  • The $1.25M–$2.0M and $2.0M–$5.0M brackets posted notable gains (+9.7% and +13.5%, respectively).

  • The very small ≤$250k segment posted the largest percentage jump (+42% pending; +151.7% closed), but it’s a tiny slice of the market and won’t move county medians by itself.

What it means: The move-up and aspirational tiers are healthy—buyers with equity and stronger financing are still transacting, especially for larger homes and quality locations.

Inventory of Homes for Sale June 2025 vs June 2024 By Price Range By Square Feet

Supply: The big story of 2025

  • Active listings up 28.7% year over year, with condos/townhomes +38.1% and single-family +22.8%.

  • By size, 1,500 sq. ft. and below and 2,001–3,000 sq. ft. had the largest inventory expansion (+34.6% and +30.9%), creating fresh options for both first-time buyers and move-up households.

What it means: More choice is returning. For buyers, that’s better selection and fewer bidding wars. For sellers, pricing strategy and presentation matter more than they did in 2023–2024.

Months’ Supply & Market Balance: Drifting toward neutral

  • Market-wide months’ supply rose to 3.4 from 2.7 a year ago.

  • Single-family sits around 3.1 months—still a sellers’ market by textbook definitions, but less tight than last year.

  • Condos/townhomes at 4.0 months are closer to balanced, giving buyers time to evaluate and negotiate.

What it means: We’re not in a buyer’s market, but conditions are more even. Expect fewer “two-day” sales and more measured negotiations.

Days on Market & Negotiability: Time on market up, list-price discipline down

  • DOM rose from 28 → 36 days countywide (+28.6%).

  • Sale-to-original list price dipped to 98.1% (from 99.6%).

  • Luxury outliers behaved differently: $5M+ saw DOM improvement and slightly higher list-to-sale ratios—thin inventory and unique property features can still command firm pricing.

What it means: Buyers: you have room for due diligence and realistic counters. Sellers: accurate initial pricing is critical—overpricing risks staleness and eventual concessions.

Micro-Signals by Home Size

  • 3,001–4,000 sq. ft.: Pending +9.3% and median prices +6.1%—a sweet spot for move-up families needing space.

  • ≤1,500 sq. ft.: Closed sales +3.1% and inventory +34.6%—starter buyers have more shots on goal, but should still be pre-approved and fast when the right home appears.

Months Supply of Inventory June 2025 vs June 2024 By Price Range By Square Feet

Practical Playbooks

For Sellers

  1. Price with precision. With sale-to-original list price down to ~98%, the market is punishing aspirational pricing. Launch at today’s comp-supported number to capture early momentum.

  2. Win on condition. Fresh paint, flooring, light landscaping, and pre-list repairs move you to the “show-ready” cohort that still sells quickly at or near ask.

  3. Use a 2-step plan. If activity lags after 10–14 days, pre-plan a surgical price improvement and buyer incentive (rate buydown or closing credit) to reset attention without signaling distress.

  4. Market the lifestyle. In sub-markets like EastLake, Otay Ranch, and Rancho Del Rey, highlight walkability, parks, and HOA amenities—these remain key drivers for family buyers.

For Buyers

  1. Leverage choice. With inventory up nearly 29%, ask for seller credits on homes sitting beyond the median DOM, especially condos/townhomes where months’ supply is ~4.0.

  2. Be bid-ready. The best SFHs still receive multiple offers—clean terms and strong pre-approval remain decisive.

  3. Shop the middle-upper tiers. The $1.25M–$2.0M and $2.0M–$5.0M ranges are active but not overheated; inspection and repair credits are viable again.

  4. Mind the micro-market. Street-by-street dynamics matter in Chula Vista, coastal enclaves, and inland North County—lean on hyper-local comps, not county medians.

Our Read on the Next 60–90 Days

  • Expect seasonally slower late-summer/early-fall absorption, stable to slightly soft list-to-sale ratios, and continued selection for buyers.

  • Prices likely hold near current medians countywide, with single-family remaining sturdier than condos given family-buyer demand and limited quality inventory in prime neighborhoods.

  • If mortgage rates drift lower, we’d expect a Q4 pickup in pendings without a dramatic price surge—more of a volume recovery than a spike in medians.

If you’re thinking about selling or buying in EastLake, Otay Ranch, Rancho Del Rey, or anywhere in San Diego County, we’ll build you a micro-market game plan—pricing, prep, timing, and negotiation strategy tailored to your street and property type.

Data source: Greater San Diego Association of REALTORS® Housing Supply Overview, July 2025 (San Diego MLS). Dawn Lewis & The Lewis Team at Real Broker
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