The San Diego Real Estate Market: 2025 in Review & Predictions for 2026
What happened in the San Diego real estate market in 2025, and what does it mean for 2026?
2025 was a resilient and productive year for the San Diego real estate market, with over 20,000 homes sold countywide. Buyer demand remained strong in most neighborhoods, pricing became more disciplined, and the market rewarded sellers who aligned with real buyer behavior rather than headlines.
Once you understand what actually sold, the next step is knowing how to act on that information. That’s where Melina Rissone comes in. She has decades of experience working with buyers and sellers throughout San Diego to translate closed-sale data into smart, neighborhood-level decisions, whether you’re planning to sell, buy, or simply want a realistic view of where the market is headed.
Looking Back on San Diego’s Real Estate Market in 2025
Reviewing closed sales from January through December 2025, San Diego once again demonstrated why it remains one of the most durable housing markets in the country. About 22,100 properties closed escrow, confirming that buyer demand translated broad interest and appeal into real transactions.
Buyers stayed active but were slightly more selective than in years past. Homes that were priced correctly and prepared properly sold efficiently, while those anchored to outdated pricing expectations often experienced longer market times or required adjustments. This marked a return to a more strategic, data-driven market rather than an emotional one.
Still, the median days on market was just 23—drastically less than the roughly 45 days on market seen nationally.
When Was the Most Active Housing Market in 2025?
Based on closed sales activity, 2025 followed a familiar but slightly shifted seasonal pattern.
Spring through early summer remained strong, particularly April through July, when buyer urgency translated into high closing volume. However, October stood out as the most active month of the year, meaning that buyer demand did not disappear after the summer. January also surprised many with strong early closings, while December slowed as expected during the holidays.
One of the most important takeaways from the sold data is that fall closings rivaled spring. Most buyers nowadays no longer wait for a “perfect” season. When the right home appeared in the right neighborhood, they moved forward. The data confirms that timing decisions should be based on neighborhood demand, not just the calendar.
What Buyer Demand Looked Like Across San Diego Neighborhoods
Buyer demand in 2025 remained steady, but it was far more targeted than during prior boom years. Instead of broad competition everywhere, sales concentrated in neighborhoods offering daily livability, central access, or long-term value. The median sale price for homes across San Diego County held steady at $900,000, while the average price (skewed higher by the luxury market) came in at $1,264,000.
Ultimately, homes that aligned with buyer expectations were the ones that closed efficiently. Homes priced based on last year’s peak often stayed on the market longer before selling. This created meaningful opportunities for informed buyers and reinforced the importance of preparation and pricing accuracy for sellers.
The sold data from 2025 strongly supports one core lesson: buyers win by understanding micro-trends, not countywide averages.
Which San Diego Neighborhoods Were Hottest in 2025?
Rather than one area dominating the entire year, several neighborhoods consistently outperformed based on volume of closed sales, buyer competition, and perceived value.
Neighborhoods that stood out in 2025 included:
Downtown San Diego, supported by urban lifestyle and condo demand
La Jolla, continuing to attract high-end and long-term buyers
Pacific Beach, driven by lifestyle appeal and rental demand
Clairemont, offering central access and relative affordability
Mission Hills and Hillcrest, known for charm, walkability, and limited inventory
College Area, fueled by rental demand and redevelopment activity.
What these neighborhoods shared was not price point alone, but practical day-to-day livability. Buyers in 2025 were often willing to compromise on size or upgrades, but far less willing to compromise on location. Melina frequently emphasizes that in San Diego, neighborhood momentum matters more than countywide averages, and the 2025 sold data reinforces that reality.
San Diego Housing Supply Through the Lens of Sold Homes
While inventory was higher than historic lows, the number of successful closings confirms that San Diego never moved into oversupply territory. Entry-level and mid-range homes continued to account for a significant share of closed sales, while higher-end properties required sharper pricing and more patience, particularly outside premium coastal areas.
This created a healthier, more balanced environment and reduced the extremes seen in earlier years.
Some “Just For Fun” Market Statistics
And finally, a few fun statistics before we move on to our 2026 forecast:
The priciest home sold in 2025 was a $50 million, 6,000 square foot oceanfront home in Del Mar with 75 feet of beachfront, 7 bedrooms, and 9 bathrooms.
The cheapest home (this analysis excludes manufactured and mobile homes) was a $70,000 fixer-upper cabin in Julian.
The honorary (and more subjective) award for fanciest sale goes to the $28 million, 39-acre estate in Rancho Santa Fe that features a total of 19 bedrooms and 23 bathrooms.
And the combined grand total for all sold homes in San Diego County for 2025 was a whopping $27.98 billion.
San Diego Real Estate Market Predictions for 2026
Looking ahead, patterns from 2025 closings offer clear clues about where buyer attention may concentrate next.
Clairemont is positioned to continue attracting buyers priced out of coastal neighborhoods. The College Area remains supported by rental demand and renovation activity. University City and Linda Vista benefit from proximity to job centers and transit. Del Cerro continues to appeal to buyers seeking space and a more residential feel.
In 2026, buyers are likely to prioritize functionality, commute flexibility, and long-term value over prestige alone. Melina Rissone often encourages her buyer clients to explore one neighborhood beyond their initial target, and that strategy is likely to be especially effective moving forward.
What Buyers Should Focus On
Buyers entering the market should pay close attention to neighborhood-level trends rather than list prices alone, be prepared to act when well-priced homes appear, and rely on recent closed sales, not asking prices, to guide decisions. Having a clear plan and strong local guidance will matter as competition concentrates in specific areas.
What Sellers Should Focus On
Sellers considering a move should study how their neighborhood performed in 2025, price for today’s buyer rather than yesterday’s market, and prepare their home thoroughly before listing. Melina Rissone helps sellers build launch strategies based on real sold data from comparable homes. Taking the emotion out of pricing can make a significant difference in results.
How to Take Advantage of San Diego’s Market in 2026
The San Diego real estate market in 2025 proved to be stable, active, and resilient. Demand translated into real sales, pricing became more disciplined, and buyers focused on long-term livability.
In 2026, the greatest advantage comes from understanding how your specific neighborhood fits into the broader market. If you want to know how your home value has changed or what it could realistically sell for this year, connect with Melina for a free, data-backed market value report tailored to your property and neighborhood.
Melina Rissone
Having sold properties for more than 20 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers selling homes and luxury condominiums. Her loyal clientele would share that Melina brings structure and planning to chaos. She specializes in supporting her clients and their referrals; families and individuals going through divorce and seniors and active adults planning their moves and financial decisions during their retirement years.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
Certified Senior Advisor by the Society of Certified Senior Advisors
RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
SRES Certification through NAR is a Seniors Real Estate Specialist certification.
Melina is bilingual in English and German.
Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
Coldwell Banker Presidents Elite Award.
Recognize as the Top 2% of Coldwell Banker West in 2024.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing Certified.
Melina is on point, extremely resourceful and well connected. She has a very versatile knowledgebase so was able to help guide us in many areas I was not even expecting from an agent. I've referred her to several friends who all reported great experiences. She takes her role in representing her client very seriously so its not like some kind of half time gig thing. She gets it done.
-Dan C.
