San Diego Real Estate Watch 

More Listings, Fewer Closings

The San Diego real estate market is experiencing meaningful shifts, with active listings steadily increasing across all price segments. The $1M–$1.5M price range saw the sharpest growth, climbing 4.9% as of Monday, May 12, 2025, when compared to the previous week. This ongoing expansion in inventory provides fresh opportunities for buyers and new challenges for sellers. Below, we’ll break down the latest data to give you a clear picture of what these trends mean for you.

Active Listings on the Rise

As of May 12, 2025, total active listings grew by 2.6% compared to the prior week, offering promising news for buyers as the market adds more supply. Here's a breakdown of how inventory is changing by price segment:

• Under $1M: Listings increased by a modest 0.4% in the last week, with the 1,105 active listings in May 2025 marking a dramatic rise from 486 listings in December 2023. This reflects expanding opportunities for more affordable housing, giving budget-conscious buyers more choices.
• $1M–$1.5M: This price range showed the biggest increase, with a 4.9% gain week-over-week, bringing the total to 946 active listings as of May 2025. This is a significant improvement from the 296 listings in December 2023, demonstrating growing availability for buyers in this bracket.
• $1.5M–$2M: Active listings in this high-dollar segment climbed by 2.5% week-over-week, with May 2025's inventory at 451 listings, recovering from 155 listings in December 2023.

Overall, total active listings surged from 937 in December 2023 to 2,502 as of May 12, 2025. This marks a significant rebound in just 18 months, creating a less competitive buying environment.

For buyers, this translates into improved negotiating power and less pressure to make rushed decisions. For sellers, however, the rising inventory means pricing and marketing strategies need to be sharper to capture buyer interest.

Closed Sales Trends

While inventory is expanding, closed sales show more nuanced trends, as buyers and sellers adjust to the evolving market. Here’s a breakdown of the latest sales data as of May 12, 2025:

• Under $1M: Closed sales in this price segment totaled 701 homes in May 2025, up from 451 in December 2023, reflecting strong activity among cost-conscious buyers. However, week-to-week volatility remains, making preparedness key for both buyers and sellers.
• $1M—$1.5M: Sales in this popular range reached 409 closed homes in May 2025, rising from 221 sales in December 2023, though still below their peak in mid-2024. Buyers are cautiously returning as confidence improves.
• $1.5M–$2M: Closed sales in this high-dollar category hit 180 homes in May 2025, up from 78 in December 2023. However, competition remains strong, and sellers need to adopt strategic incentives to close deals effectively.

Across all price ranges, 1,290 closed sales in May 2025 represent a solid recovery from 837 closed sales in December 2023, though the slower sales growth compared to rising inventory hints at an increasingly selective market.

Opportunities and Strategies

The May 12, 2025, data highlights both challenges and opportunities for market participants. Here’s how buyers and sellers can take advantage of the current trends:

Buyers in the $1M–$1.5M Range Should Act Soon
This price range has the highest inventory growth, giving buyers a unique window to find homes that meet their needs. Sellers, meanwhile, must price competitively and focus on presentation to attract motivated buyers.

Opportunity in the Sub-$1M Market
While inventory in this affordable segment is growing, demand remains strong, leading to faster closings. Sellers here are in a favorable position but should still prepare their homes to stand out. Buyers will need to act decisively to secure deals in a competitive environment.

Timing Is Key for High-Dollar Listings in the $1.5M–$2M Segment
Though inventory is gradually rising, high-dollar homes are taking slightly longer to sell. Sellers should focus on competitive pricing, flexible terms, and attractive incentives, while buyers can take advantage of this slower pace to negotiate favorable terms.

Final Thoughts

The San Diego real estate market continues to evolve, with expanding inventory offering more options for buyers and presenting new challenges for sellers. The $1M–$1.5M price range stands out as a buyer-favorable segment, while the high-dollar market will require sellers to stay agile and innovative to secure deals.

For agents and investors, understanding and leveraging these trends is essential for success. With competition anticipated to grow in the coming weeks, making informed decisions based on trusted data will set you apart in this dynamic market.

Wedgewood Homes: Your Trusted Investor-Buyer in San Diego

At Wedgewood Homes, we take pride in our data-driven approach to navigating San Diego’s evolving real estate market. Through careful analysis of active MLS listings and closed sales trends, we identify opportunities and align our purchasing strategies to meet the needs of the local community. This method not only supports market growth but also reinforces our dedication to building strong partnerships within the industry.

We are excited to continue working closely with agents on acquisitions. If you know of a homeowner interested in a quick, all-cash, off-market offer, we’re here to help. Simply use our property submission form to share the property address with us for review. Our team is ready to answer any questions and discuss how we can collaborate to make the most of these opportunities.

By investing in areas of high demand and addressing the needs of underserved segments, Wedgewood Homes remains committed to creating value for buyers, sellers, and our agent partners. Reach out today to discover how we can work together.