Amara Berg
Amara Berg is a multifamily sales specialist and property manager based in San Diego. With years of experience navigating California's dynamic housing market, Amara is passionate about helping clients make informed decisions while keeping things relatable and fun. Follow her insights on all things real estate, from market projections to tips on finding your dream home.
California Dreaming: Will San Diego Home Prices Keep You Awake in 2025?
Ah, California — the land of avocado toast, tech dreams, and home prices that can make even the calmest among us break out into a cold sweat.
Current State of San Diego Homes for Sale: What’s Hot (And What’s Not)
San Diego isn’t just about sunshine and surfboards; it’s also one of the hottest real estate markets in California. As of January 2025, the median home price here is hovering around $950,000, with desirable neighborhoods like La Jolla, Del Mar, and Encinitas still commanding sky-high prices. Even the so-called “affordable” areas like Chula Vista and Escondido are seeing significant price appreciation.
What’s Driving These Prices?
- Low Inventory: As usual, there just aren’t enough homes for sale. This is a trend that has persisted for years and isn’t showing signs of slowing down.
- Demand from Out-of-Staters: Californians may be leaving, but don’t forget that remote workers from places like New York and Texas are still eyeing San Diego as their sun-soaked paradise.
- High Mortgage Rates: Yep, higher rates are still a thing. But surprisingly, this hasn’t cooled the market as much as you’d expect.
Want to check the latest listings in San Diego? See what’s new on the market here.
The Great Migration: Who’s Coming and Who’s Going?
California has been the poster child for outbound migration. Let’s be real, the combo of high home prices, taxes, and the cost of living is enough to make anyone consider Idaho. But here’s the kicker: San Diego seems to be bucking the trend. The area is still attracting buyers who want year-round good weather and access to beaches, breweries, and biotech jobs.
Inbound Movers:
- Tech workers from the Bay Area (who sold their Silicon Valley homes and think San Diego is a bargain).
- Remote workers from colder states who finally decided they deserve year-round sunshine.
Outbound Movers:
- Retirees seeking tax-friendly states like Arizona and Nevada.
- Families moving inland for more space and affordability (Temecula is calling!).
Curious where Californians are going? Check out this article on outbound migration trends.
2025 Projections: Should You Buy Now or Wait for the Crash That Never Comes?
Spoiler alert: If you’re waiting for San Diego’s housing prices to crash, you might be waiting longer than it takes for Gen Z to figure out what a rotary phone is.
Expert Projections for 2025:
- Moderate Price Growth: Industry experts predict a 3-5% increase in home prices for San Diego throughout 2025. That’s a slowdown compared to the double-digit growth we’ve seen, but it’s still upward momentum.
- Stable Demand: With ongoing job growth and limited inventory, don’t expect a buyer’s market anytime soon.
- Mortgage Rate Pressures: If rates drop below 6%, expect a new surge of buyers entering the market. Conversely, rates climbing above 7% could temper demand just enough to balance things out.
3 Incredible Tips for Buyers in 2025: How to Survive the Madness
- Get Pre-Approved Yesterday: You’re not even in the game until you have that pre-approval letter in hand.
- Consider a Fixer-Upper: Unless you have $1 million lying around for a move-in-ready home in La Jolla, a property with “potential” could be your ticket.
- Work with a Local Agent: San Diego’s market isn’t for the faint of heart. You need someone who knows how to navigate multiple offers, bidding wars, and the occasional heartbreak. Hint: You can connect with an experienced agent here.
Sellers: Is Now the Time to Cash Out?
If you’re a homeowner thinking about selling, 2025 could be your moment. With prices still expected to rise, you’ll likely get top dollar. But don’t get too greedy — buyers are getting savvier, and overpriced homes are sitting longer on the market.
Final Thoughts: The California Conundrum
San Diego real estate is like your favorite rock band—sometimes unpredictable but always iconic. Whether you’re a buyer, seller, or just someone with Zillow bookmarked (no judgment), 2025 is shaping up to be an exciting year. So grab your shades, keep your pre-approval handy, and remember: It’s not just a home; it’s a lifestyle.
Want to stay updated on San Diego real estate news? Subscribe to our newsletter here.
And if you’re still dreaming of that beachside home, don’t worry—the California dream is alive and well, even if it comes with a hefty price tag.