San Diego Is Bucking the National Housing Trend

If you have been following the national housing market, you have probably heard a familiar story: inventory is rising, homes are taking longer to sell, and price growth is slowing.

San Diego's latest numbers tell a different story.

In August, San Diego County home prices were up approximately 5.7% from a year ago, compared with roughly 2.2% nationally. Even more interesting, while housing inventory has been increasing across much of the country, San Diego's inventory actually declined from last year.

More than 35% of San Diego homes also sold above their asking price.

Why Does San Diego Keep Behaving Differently?

I think the answer starts with supply.

Higher mortgage rates have reduced buyer demand, but they have also made existing homeowners less likely to sell. In many parts of the country, growing inventory has given buyers substantially more options. Here, the number of homes available remains constrained.

Then there is the structure of San Diego itself.

We have limited developable land, decades of constrained housing production, strong employment centers and, perhaps most importantly, a place where people genuinely want to live. At the same time, many existing homeowners have significant equity and little financial pressure to sell.

Put it all together and San Diego has a housing market that can absorb slower demand differently than many parts of the country.

What Does This Mean Going Forward?

None of this means San Diego is immune to higher rates or broader economic changes. It means our supply and demand equation is different.

For buyers, a slower market can create negotiating opportunities that were nearly impossible a few years ago.

For sellers, limited inventory can still create strong demand, but buyers have become far more selective about condition, location and price.

The national housing market can tell us where the wind is blowing. Understanding San Diego tells us how to actually navigate it.

If you are considering buying, selling or investing, reach out. I am always happy to break down what today's market means for your specific situation and help you build a strategy around it.