The Year Ahead In Real Estate – National And Market Specific Insights Series: California

As we embark into 2025, the San Diego housing market continues to hold steady in the face of some big challenges. The classic imbalance between supply and demand continues to drive competition. Single family homeowners benefited from prices moving up last year (+15.0%), and the market dynamics are poised for that trend to continue. With inventory remaining tight, many of these sellers hold an advantage.

Condo markets, specifically those with high HOA fees (+$1k/mo), are a different story. They experienced some slight erosion to values (-2.9%) last year compared to the year prior, creating a potentially strategic purchase decision for those who are seeking a “lock-up and leave” second home. This could be especially true for those who have the ability to purchase cash or use a significant downpayment.