Can you believe we’re already halfway through 2025? A lot of people are asking me the same thing right now: What’s next for the housing market?
While no one has a crystal ball, updated forecasts from Fannie Mae, NAR, Zillow, and others give us a solid look at where things might be headed—and what it could mean here in San DIego.
🏡 Home Prices: Slight Growth, But It Depends on Location
Most experts agree that home prices will rise slowly this year:
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Fannie Mae: +4.1%
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NAR: +3%
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Zillow: projecting a slight drop of -1.4%
👉 Locally - As of Spring 2025, the San Diego housing market remains steady but shows signs of softening. The median home price in the city is around $1,000,000, with obvious wide swings, up just over 2% year-over-year. Detached homes are selling On Average $1.1M, while condos and townhomes average $690K. Homes are spending about 20 days on the market, slightly longer than last year, and sales volume has dipped by 8.6%. Inventory has reached a five-year high, giving buyers more choices and negotiation power, with nearly 28% of listings seeing price reductions—the most since 2019. To afford a mid-priced home, buyers now need to earn around $241,000 annually, putting San Diego among the top five most expensive markets in the country. In short: buyers are gaining leverage, sellers need to price strategically, and the market is shifting toward more balance.
📈 Home Sales: Gradual Rebound
We’re starting to see a bit more movement as inventory improves and buyers adjust to current rates:
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NAR expects a 6% increase in existing home sales this year
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Zillow is more conservative at 1.4%
💰 Mortgage Rates: Still in the 6s
If you're waiting for sub-5% rates… you’ll likely be waiting a bit longer. Most forecasts suggest we'll stay around 6.1%–6.6% through 2025, with small improvements into 2026.
That said, many buyers are moving forward now—especially with strategies like buydowns or locking in before prices rise more.
🎯 What This Means for You
The market is still moving, just more gradually. Whether you're thinking of buying, selling, or just curious how all this impacts your plans, we're always happy to break it down and help you make sense of it.
Every market is different—and even different price points behave differently.
If you're wondering how things are shifting in your neighborhood, let’s talk!
You can schedule a one-on-one call here: https://book.bookwithshell.com/widget/bookings/intro-call-with-shell
