San Diego County Home Prices and Sales Ease as Buyers Pause Amid High Mortgage Rates

Market activity softens as affordability pressures persist

San Diego County’s housing market has entered a slower phase, with both prices and sales showing signs of cooling compared with earlier periods. Recent regional reports indicate that buyers are taking longer to commit, while sellers are adjusting to a market that is no longer defined by rapid turnover and aggressive bidding in many neighborhoods.

One mid-year snapshot illustrated the shift: the median sold price of an existing single-family home in San Diego County was reported at $1.025 million in June 2025, down from $1.05 million in May 2025 and from $1.054 million in June 2024. Over the same month-to-month period, the number of sales was also lower than the prior month, reflecting reduced transaction volume even as some buyers re-entered the market.

Falling sales volumes reflect a “wait-and-see” posture

Housing economists and market trackers have increasingly described buyer behavior as cautious rather than absent. Elevated borrowing costs have kept monthly payments high, limiting purchasing power even when headline prices flatten. Nationally, existing-home sales in 2025 remained near the lowest levels seen since the mid-1990s, underscoring how interest rates and limited supply have constrained mobility across many metro areas, including Southern California.

In San Diego County, the dynamics are shaped by both affordability and supply. Many current homeowners hold mortgages originated at substantially lower rates than those available through much of 2024 and 2025, reducing the incentive to sell and keeping resale inventory tight. This “lock-in” effect can dampen sales even when demand exists.

Price measures show mixed signals across datasets

Depending on the index, pricing trends can look different. Repeat-sales measures tracking the same properties over time have shown modest month-to-month movements in the San Diego region, while median-price measures can swing with changes in the mix of homes sold. Together, these indicators point to a market that is not collapsing but is losing momentum compared with the rapid appreciation cycles earlier in the decade.

What buyers and sellers are watching next

• Mortgage rates and monthly payment burdens, which remain the dominant constraint on demand.
• Inventory levels heading into the spring selling season, a key determinant of negotiating leverage.
• Time on market and sale-to-list price ratios, which tend to adjust before large price moves appear.

The current slowdown is characterized less by a surge in distressed selling and more by households delaying decisions, waiting for clearer signals on rates, prices, and available listings.

For now, the data depict a housing market that is functioning but slower: fewer transactions, more selective buyers, and pricing that is increasingly sensitive to financing costs and the quality of inventory that comes to market.