San Diego Real Estate Market Update | October 2025 Housing Trends & Insights

After a rollercoaster summer of fluctuating mortgage rates and cautious buyers, San Diego’s fall real estate market is showing signs of life again.

The combination of slightly lower rates, fresh inventory, and pent-up demand has made October 2025 one of the most interesting months we’ve seen all year. Let’s take a look at what’s happening across the county — and what it means if you’re planning to buy or sell soon.

📉 Mortgage Rates: Finally a Bit of Relief

After peaking earlier this year, mortgage rates have dipped slightly in October — giving buyers a small but meaningful boost in purchasing power.

Many North County buyers who paused their searches over the summer are jumping back in before the holidays, hoping to secure a home before rates rise again in early 2026.

Pro tip for buyers: If you’ve been waiting for a “sign,” this might be it. Work with your lender to get pre-approved now before the winter rush.

🏘️ Inventory: Rising… But Still Tight

New listings have ticked up slightly across San Diego County — especially in areas like Carlsbad, Encinitas, and Mission Valley — but overall supply remains well below normal.

Homes that are priced strategically and staged well are still selling quickly, often within the first two weeks. However, overpriced listings are sitting longer as buyers become more value-conscious.

Pro tip for sellers: Focus on presentation. Fall buyers are serious, but selective. Proper pricing and presentation can make your home stand out even in a cautious market.

💰 Home Values: Holding Strong

Despite all the talk of a cooldown earlier in the year, home values across most of San Diego remain remarkably stable.
In fact, several micro-markets — particularly La Jolla, Del Mar, and Solana Beach — have seen renewed interest in luxury listings as buyers take advantage of softer competition.

Even entry-level homes are holding firm due to continued demand from first-time buyers and limited supply.

🍂 What to Expect Through the End of the Year

The final quarter of the year often sees fewer casual buyers, but those still shopping tend to be motivated and ready to close.

Expect:
✅ Continued moderate demand through November
✅ Sellers who price realistically to win
✅ Buyers using rate buydowns or cash offers to stay competitive

If rates remain stable, we could see a busy early winter before the 2026 market resets.

💡 The Bottom Line

The San Diego housing market isn’t “cooling off” — it’s shifting back to strategy.
Both buyers and sellers have opportunities right now, but success depends on timing, preparation, and expert guidance.

Whether you’re planning to buy, sell, or simply explore your options before 2026, now’s the perfect time to talk strategy.

Ready to see how today’s market impacts your plans?
📲 Contact me for a personalized home strategy session — whether you’re buying, selling, or just exploring your next move in North County San Diego.