As we move into the second half of 2025, here’s a snapshot of what’s happening in the San Diego County real estate market—and what buyers and sellers should expect:
1. Prices Are Stabilizing
After a rapid surge in 2021–2023, prices in many areas (especially East County and suburban markets like El Cajon and Santee) have begun to stabilize. This is good news for buyers looking to enter the market without overbidding.
2. Inventory Is Slowly Increasing
More homes are hitting the market, giving buyers slightly more options. However, inventory is still below historic norms, which means demand remains strong—especially for updated, move-in-ready homes.
3. Mortgage Rates Are More Predictable
Rates have settled in the 6–7% range, bringing more confidence to both buyers and sellers. Many homeowners are once again feeling comfortable making a move.
4. Investors Are Eyeing the Suburbs
Santee, La Mesa, and Chula Vista are seeing increased interest from investors, thanks to affordable prices, rising rents, and strong rental demand.
5. Sellers Still Have an Edge—But Only If Priced Right
Well-prepared, well-priced homes are still selling quickly. Overpriced listings are sitting longer and seeing price cuts. Strategic pricing is critical.
