California's Housing Market Rebounds in June: What San Diego Sellers Need to Know

Published July 25, 2025

California's housing market delivered a surprising rebound in June 2025, reversing three consecutive months of declining sales and offering the first glimpse of stability in what has been a turbulent year for real estate. The latest data from the California Association of Realtors reveals a complex market landscape where statewide recovery masks significant regional variations—and San Diego's story tells a particularly compelling tale of transformation.

The Statewide Picture: A Market in Transition

California home sales totaled 264,260 in June on a seasonally adjusted annualized rate, representing a 4.0% increase from May's 254,190 sales [1]. While this uptick reversed the recent downward trend, sales remained virtually flat compared to June 2024, declining just 0.3% year-over-year. The statewide median home price of $899,560 showed remarkable stability, dropping only 0.1% from both the previous month and the previous year.

Perhaps most significantly for market watchers, total active listings surged more than 40% year-over-year, reaching a 68-month high and marking the 17th consecutive month of annual supply gains [1]. This inventory explosion signals a fundamental shift toward more balanced market conditions after years of severe supply constraints.

The median time to sell a California home stretched to 24 days in June, up from 18 days in June 2024, while the sales-price-to-list-price ratio slipped to 99.3% from the previous year's 100% [1]. These metrics paint a picture of a market where buyers are gaining negotiating power and sellers must adjust expectations accordingly.

San Diego's Unique Market Dynamics

San Diego's market tells a more nuanced story that diverges from statewide trends in several key areas. According to CAR data, San Diego's median sale price reached $1,025,000 in June, down 2.4% from May, with sales declining 3.9% year-over-year [1]. However, additional market analysis reveals the complexity beneath these headline numbers.

Local data shows San Diego's median sold price at $876,062, up 2.2% from the previous year, with homes averaging 28 days on market—a dramatic 61.5% increase from the 17 days recorded in June 2024 [2]. This extended marketing time reflects the broader shift toward buyer-favorable conditions that's reshaping our local market.

The inventory story in San Diego is particularly striking. The market had 1,133 homes for sale in June, representing a 5.4% monthly increase, while overall inventory has surged 50-59% year-over-year [2]. This represents one of the most significant inventory expansions in recent memory, fundamentally altering the supply-demand equation that has driven San Diego's market for years.

Regional Performance Reveals Market Complexity

California's regional performance in June highlighted the diverse nature of the state's recovery. The Far North led with 13.7% year-over-year sales growth, followed by the Central Coast at 11.4% [1]. Southern California, which includes San Diego, posted modest 1.9% growth, while the San Francisco Bay Area managed just 1.0% growth. Only the Central Valley posted a decline, slipping 0.8%.

This regional variation underscores a critical point for San Diego sellers: while our market is experiencing challenges, we're still outperforming many other major California regions. The key is understanding how to navigate the changing conditions effectively.

Market Conditions by Price Segment

San Diego's market shows interesting variations across price segments. Luxury properties (5-bedroom homes) experienced remarkable 37.3% price growth year-over-year, jumping from 1.7millionto1.7 million to 1.7millionto2.3 million [2]. Meanwhile, the mid-range market (1-4 bedroom homes) showed more modest gains of 1.4% to 1.6%, with 2-bedroom properties actually declining 1.5%.

This segmentation reveals that while luxury buyers remain active and competitive, the broader market is experiencing the price moderation that comes with increased inventory and extended marketing times.

Strategic Implications for San Diego Sellers

The data reveals several critical insights for San Diego sellers navigating today's market. First, the 28-day average marketing time means sellers must prepare for a longer sales process than the rapid transactions of recent years. Properties need to be priced strategically from the start, as the days of multiple offers above asking price are becoming increasingly rare.

Second, with inventory up over 50% year-over-year, differentiation becomes crucial. Homes must stand out through superior staging, strategic pricing, and comprehensive marketing to capture buyer attention in an increasingly crowded marketplace.

Third, the shift toward buyer-favorable conditions means sellers should expect more negotiation on price, terms, and concessions. The sales-price-to-list-price ratio dropping below 100% statewide signals that realistic pricing strategies are essential for success.

Looking Ahead: Opportunity in Transition

While these market shifts may seem challenging for sellers, they actually represent an opportunity for those who adapt their strategies accordingly. C.A.R. President Heather Ozur noted that "conditions have become more favorable for prospective buyers who have been waiting on the sidelines to re-enter the market," while Chief Economist Jordan Levine suggested the market "could see a bounce-back in the second half of the year" [1].

For San Diego sellers, success in this evolving market requires partnering with professionals who understand both the broader California trends and our unique local dynamics. The market is becoming more sophisticated, demanding more strategic approaches to pricing, marketing, and negotiation.

Ready to navigate San Diego's evolving market with confidence? Contact our team of local market experts for personalized guidance on maximizing your property's value in today's changing conditions.

References

[1] "June home sales and price report." California Association of Realtors, July 17, 2025. https://www.car.org/aboutus/mediacenter/newsreleases/2025releases/june2025sales

[2] "San Diego, California Housing Market Report June 2025." Rocket Homes, June 2025.
https://rocket.com/homes/market-reports/ca/san-diego