San Diego Coastal Real Estate Market Update: May and June Trends 2025

The summer market is heating up—but not in the way many expected.

If you're buying, selling, or just keeping an eye on San Diego coastal real estate, now is the time to understand where the numbers are headed and how they could impact your strategy this summer.

Here’s a quick breakdown of what we’re seeing across coastal communities from Downtown San Diego to Encinitas:

📉 Prices Have Pulled Back

In both May and June, we saw detached home prices decline, reaching the lowest point so far in 2025:

Detached Homes: ~$1.6M

Condos/Townhomes: ~$760,000

This price adjustment could present a window of opportunity for buyers who were previously priced out—or give sellers a reason to consider pricing more strategically to stay competitive.

📦 Inventory Is Trending Up

Inventory is finally rising in a way that aligns with basic supply and demand. When I last reported, we were at around 1,800 active listings—now we’re at 2,000. That’s a meaningful shift that could put some pressure on sellers and offer more choice to buyers.

⏳ Time on Market Differs for Detached and Condos

Despite the pricing and inventory changes, time on market for detached homes remains relatively flat, hovering around 30 days. This suggests demand is still there—but buyers may be negotiating more and moving a bit more cautiously. However, condo's added a week to their average, now taking roughly 6 weeks to sell.

💰 Close-to-List Price Ratio Is Slipping

One of the more telling stats this month: homes are now selling for about 96% to 97% of their original asking price. In previous months, that number was stronger, suggesting sellers may need to be more flexible to get deals done.

🏦 Mortgage Rates: A Bit of Good News

While rates remain elevated historically, we’ve seen a slight improvement. The average mortgage rate now sits at 6.8%, which is a small but welcome drop for buyers. Every tenth of a percent helps when it comes to monthly payments and overall affordability.
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🎯 What This Means for You

The current data tells us one thing: strategy matters more than ever.

Buyers: With prices softening slightly and inventory improving, this could be your best window in months to get into a coastal home without the intense competition of previous summers.

Sellers: Pricing right and understanding your competition is key. Homes are still selling—but overpricing could cost you time and money.

Every situation is different, and every property requires its own game plan. If you want to talk about your goals—whether it’s selling this summer, buying your next place, or just keeping tabs on the market—I’d love to connect.

👋 Let’s Talk
📲 Contact me anytime for a custom market analysis or buyer consultation.
📍 John Collins
REALTOR® | CalRE #01948188
Brokered by Coldwell Banker Realty | CalRE #00616212

Let’s make smart moves togethe