Is Spring 2025 the Right Time to Buy or Sell in San Diego’s Housing Market?
San Diego’s real estate market is buzzing with activity as we dive into the spring 2025 homebuying season. With inventory creeping up but demand still outpacing supply, the question on everyone’s mind is: Is now the right time to make a move? A recent NerdWallet article by Abby Badach Doyle dives into this topic, offering a national perspective on market trends and personal readiness for homebuying. Let’s break down the article’s key points, analyze what they mean for San Diego, and share actionable advice to help you navigate this competitive landscape.
Summary of the NerdWallet Article
The NerdWallet article emphasizes that deciding whether to buy a house hinges on both market conditions and personal readiness. Key market insights include:
Mortgage Rates: As of April 17, 2025, the 30-year fixed-rate mortgage averaged 6.97%, up slightly from recent months but lower than the 8% peak in October 2023.
Inventory: Housing inventory has increased to 3.5 months nationally in February 2025, up from 3 months a year ago, but it’s still a seller’s market with demand exceeding supply.
Home Sales and Prices: Existing home sales rose 4.2% from January to February 2025, and the national median home price reached $398,400, up 3.8% year-over-year.
Competition: Bidding wars are less intense, with homes receiving an average of 2.3 offers in February 2025, down from 2.7 the previous year.
Personal Readiness: Buyers should assess job security, savings (typical down payments are 9% for first-time buyers), credit scores (average 734 for recent mortgages), and debt-to-income ratios (average 40% for recent loans).
The article advises buyers to focus on what they can control: shopping for the best mortgage rates, ensuring affordability, and securing preapproval to stay competitive.
What This Means for San Diego’s Real Estate Market
San Diego’s housing market mirrors some national trends but has its own unique dynamics, driven by its coastal allure, limited land, and robust economy. Here’s our expert analysis of how these factors play out locally:
Persistent Seller’s Market: San Diego remains a seller’s market, with a housing inventory of just 1.9 months in early 2025, significantly lower than the national 3.5 months. This scarcity fuels competition, especially in desirable neighborhoods like La Jolla and Pacific Beach, where homes often sell in under 20 days. However, the 67% year-over-year inventory increase—the largest in the U.S.—signals a slight easing, giving buyers more choices than in recent years.
High Prices and Mortgage Rates: The median home price in San Diego hit $1.05 million in spring 2025, up 7.3% from last year. With mortgage rates hovering around 6.83% for a 30-year fixed loan, affordability remains a challenge. For a $1 million home with a 20% down payment, a 6.8% rate translates to a monthly payment of roughly $5,221 (excluding taxes and insurance), compared to $4,297 at a 5% rate. This gap underscores the impact of rates on buying power.
Shifting Competition: While bidding wars are less common nationally, San Diego homes still attract multiple offers, averaging around 5 per listing. However, 47.7% of homes sold below list price in November 2024, suggesting buyers have slightly more negotiating leverage than during the 2021-2022 frenzy.
Long-Term Investment Potential: San Diego’s market is expected to see a 3.6% increase in home values by November 2025, driven by steady demand and limited supply. The city’s strong job market in tech, life sciences, and military sectors, combined with its lifestyle appeal, makes it a solid long-term investment despite short-term affordability hurdles.
The NerdWallet article’s focus on personal readiness is especially relevant in San Diego, where high prices and competition demand financial preparedness. The slight inventory uptick could be a silver lining for buyers, but sellers still hold the upper hand in most neighborhoods.
Practical Advice for San Diego Buyers and Sellers
For Buyers:
Get Preapproved: In a competitive market, a mortgage preapproval signals to sellers that you’re serious. Work with lenders to lock in a rate, protecting against potential increases.
Explore Financing Options: Consider low-down-payment programs like FHA (3.5% down) or VA loans (0% down for eligible veterans) to ease entry into the market. First-time buyer programs in San Diego can also help.
Target Emerging Neighborhoods: Priced out of La Jolla or Del Mar? Look at areas like Clairemont or University City, where demand is rising but prices are more accessible.
Act Decisively: With homes selling in 27 days on average, be ready to make a strong offer quickly. A skilled real estate agent can help you craft a competitive bid without overpaying.
For Sellers:
Price Strategically: While it’s a seller’s market, overpricing can lead to longer days on the market (median 30 days in March 2025). Work with an agent to set a realistic price based on recent comps.
Enhance Curb Appeal: With inventory up, make your home stand out. Simple updates like fresh paint or staging can attract more offers.
Time Your Listing: Early spring is San Diego’s “selling sweet spot,” with higher buyer activity. List now to capitalize on seasonal demand.
Highlight Unique Features: Emphasize San Diego’s lifestyle—proximity to beaches, good schools, or vibrant amenities—to appeal to buyers willing to pay a premium.
Why Trust Our Insights?
At [Your Brokerage Name], we’re not just tracking national trends—we’re immersed in San Diego’s real estate pulse. Our team leverages data from sources like Zillow, Redfin, and local MLS to provide you with hyper-local insights. Whether you’re a first-time buyer or a seasoned seller, we’re here to guide you through every step of the process.
Share and Stay Connected!
San Diego’s housing market is dynamic, and staying informed is key to making smart decisions. Did this post spark some ideas for your homebuying or selling journey? Share it with friends and family on social media to keep the conversation going! For more expert tips and personalized advice, visit our website at [YourWebsite.com]. Ready to make a move? Contact us today to connect with one of our top-performing agents and start turning your real estate goals into reality.
Sources: NerdWallet, Zillow, Redfin, National Association of Realtors, and local San Diego market data.