San Diego Coastal Real Estate Market Update - Jan and Feb 2025 Trends and insights

San Diego Coastal Real Estate is Heating Up: A Look at the First Two Months of 2024

If you’ve been keeping an eye on the San Diego coastal real estate market, you know things are moving fast. The end of last year left us with some uncertainty—prices were down, homes were sitting on the market longer, and we weren’t sure if this was just a seasonal slowdown or something bigger.

But now, with two months of 2024 behind us, we have a clear picture: the market is surging.

Home Prices Are Climbing Fast

The numbers speak for themselves:

• Detached Homes: The median price at the end of 2023 was $1.55 million. By January, it jumped to $1.7 million, and by the end of February, it reached $1.85 million.
• Condos & Townhomes: The median price started 2024 at $742,000 and skyrocketed to $830,000 by the end of February.

More Inventory, Yet Homes Are Selling Faster

Unlike past price surges driven by low inventory, this time, inventory is actually increasing:

• End of 2023: 1,200 active listings
• End of January: 1,300 active listings
• End of February: 1,400+ active listings

Even with more homes on the market, buyers are acting quickly.

• At the end of 2023, homes sat on the market for about six weeks on average.
• Now, detached homes are selling in under a month, and condos are averaging five weeks on the market.

Sellers Are Getting Closer to Asking Price

The list-to-close price percentage is climbing, meaning sellers are negotiating less and buyers are willing to pay more:

• End of 2023: 97%
• January: 98%
• February: 98.5%+

This suggests that competition among buyers is increasing, and well-priced homes are receiving strong offers.

Interest Rates Are Dipping—A Win for Buyers

While we had been hovering around 7% mortgage rates, February brought a slight but significant dip to 6.7%. Any drop in interest rates can improve affordability and bring more buyers into the market.

What This Means for You

Every home and every buyer’s situation is unique. Whether you’re thinking about buying, selling, or just curious about how this market impacts your real estate goals, let’s talk.

📞 Reach out today, and let’s make a plan that works for you in this fast-moving San Diego coastal market!