November 2025 - San Diego Real Estate Market Update

Nov 25

I’ll keep this month’s market update short and sweet as we all head into the Thanksgiving holiday.

While it appears that the real estate market will close out the year making little headway over the past two dismal years for sales volume, with only a 1% increase in YoY sales volume nationwide, in fact, much has improved, setting the scene for a busy 2026. There is still much that hangs on the macroeconomic developments of the coming months, but if things get better or worse economically, either scenario ought to impact the real estate market positively. The worst thing for the housing market would be continued stagnation, but the way things are evolving, further stagnation is not the most likely outcome.

Amongst the wins for the housing market in 2025 are:

Stabilized prices that both preserve the majority of homeowners' equity and offer homebuyers some pricing relief.

Falling mortgage rates. Rates have improved by 1.5 points from their October 2023 highs, potentially saving borrowers hundreds of dollars or more per month.

Increased inventory offering more choice to buyers and representing an easing of the lock-in effect for homeowners.

Demand is the final frontier for a return to normal housing market dynamics, and there are multiple paths to increased demand that may play out in the coming months. If the economy gets worse, we should get lower rates that will stimulate demand in our well-insulated local job market, while investors seek safe havens, of which San Diego real estate is one of the best. If the economy gets better, people will stop delaying their moves as rates and prices represent a new baseline. Increased inventory represents more choice for homebuyers, helping lure them off the fence as they now have access to the types of properties they want, and enjoy more negotiation power in a more balanced market.

Looking ahead, I think 2026 will mark a turning point in the post-pandemic-driven market that first crashed briefly in 2020, then rallied like never before until 2022, then stalled out completely once rates skyrocketed to battle inflation. Normalization represents flexibility, choice, and movement – finally.

Most importantly, if you have questions or concerns about your specific situation… CALL ME to help sort through them. That’s why we get up in the morning - not just to sell homes, but to serve our clients.

As always, we will be here to continue to provide you with updates about the housing market and answer any and all of your questions. Feel free to reach out to us anytime.

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