Preparing for Market Fluctuations in San Diego Real Estate

Thanks to gorgeous year-round weather, beaches, outdoor activities, and the entertainment scene, San Diego is a dynamic market for both sellers and buyers. But market fluctuations can make it difficult to decide if the time is right to make your move.

The Selby Team is here with some information about the current market, as well as a few key considerations that can help you achieve your real estate goals.

San Diego Real Estate Market Update

San Diego real estate market conditions are holding strong even as interest rates slowly climb. Demand for homes in this Southern California area remains high thanks to:

• A healthy job market
• Excellent location near amenities
• Desirable climate

That means many sellers are benefiting from strong home prices while buyers work to navigate a competitive landscape. Even amid increasing costs, there are many affordable neighborhoods within San Diego—you just need to know where to look!

2025 Projections

When it comes to the San Diego real estate market forecast, we predict limited inventory and high demand. New construction numbers are low, and many homeowners are staying put in order to keep their competitive interest rates.

While rates may stabilize, San Diego real estate market statistics show that a dramatic drop isn’t likely in the coming months. That means buyers and sellers who are waiting for a “perfect market” may miss out on valuable opportunities.

Wait or Make Your Move?

Sellers

If you’re looking to sell your home but are wondering if now is the time to list, here are a few considerations to keep in mind:

• Conditions could shift, even out of your favor: You may be holding out for a better market that may never come. What’s more, conditions could shift out of your favor, bringing new, unexpected challenges down the line.
• Timing is everything: Because we’re seeing limited inventory in desirable areas, sellers with maintained, well-prepared homes continue to attract attention and offers. If your home is listing-ready, you may be able to maximize your sale price.
• Your needs: If you have a specific reason for moving, such as needing to relocate for work, waiting may not align with those needs. Carefully consider your situation before you decide to list or wait indefinitely.
• Compass Concierge can help: If you want to get started with some improvements so you can list your house soon, let The Selby Team help. Our Compass Concierge services assist with everything from staging to repairs, often leading to faster and higher offers.

Buyers

If you’re looking to buy a house but home prices and interest rates have you hesitating, you’re not alone. However, waiting for significant drops could backfire for several reasons. Before deciding to put your dreams of homeownership on hold, consider these key factors:

• Timeline: If you’re ready to move due to a life change, such as a growing family, waiting could unnecessarily delay your goals. If you have to move for a lucrative opportunity, such as a new job with a bigger salary, your personal timeline may be more important than what’s happening in the market.
• Market trends: Even if interest rates do decline, it isn’t likely that there will be a huge drop. Additionally, high housing demand could keep home prices high or, worse, increase them if rates go down. Unfortunately for buyers, the San Diego market is not likely to see a drop in both interest rates and home prices.
• A rate isn’t forever: Even if you commit to a higher interest rate than what you were hoping for, refinancing down the road could always be an option.
• Competition is fierce: If you find a home that checks most of your boxes, waiting for a better deal likely means missing out altogether. If you find a home you love, it’s important to act fast.

Confidently Navigate Market Fluctuations

Not sure if it’s the right time to sell or buy? Our team is here to talk it out with you. We’ll help you review all of your options, and as San Diego real estate experts, we can help you understand what’s happening in the market and how any changes could impact your goals. Make the best, most informed decision that’s right for you with help from The Selby Team.