San Diego Market Watch - Real Estate Update For May 15, 2025

The number of homes for sale in San Diego County continues to rise as pending sales take a little dip and new listings keep coming strong. Hang out for a few minutes and I will show you what's happening. Hello and welcome to everybody's favorite San Diego County real estate information program, San Diego Market Watch. If you're new to this channel, please give us a like and subscribe so you don't miss any of these updates. Let's jump right into the market information. The number of homes for sale is over 6,000. I believe 6,015 was the number I got in the MLS when I pulled it this morning and that has caused us to have to rescale our graph yet again. This number has been on the march since mid-March and has risen fairly steeply over the past few weeks because new listings are hanging out right around 700 units per week and pending sales are down here around 450 or lower every week and took a little dip over the past seven days. New listings went down just a touch but pending sales were down. I won't say sharply because it's pretty much been right along this 450 line give or take a few every week since mid-March. So mid-March is when we really started to notice things were shifting and now things are shifting and possibly shifting into high gear because we are adding another couple of hundred homes every single week to the San Diego inventory and eventually the gap between supply and demand is going to catch up with us. The chickens are going to come home to roost as they say and it is going to cause a softening in prices especially if interest rates continue to do what they're doing which is hovering in the very high sixes. We got down into the lower mid sixes a few weeks ago and then shot back up. The Fed has, well it doesn't really matter what the Fed has done with the prime rate or the federal funds rate because that's not what drives interest rates. It's that 10-year treasury and the Fed stopped buying those way back in 2022 and is just sort of letting the treasury bond market do what it will at least for now and it's hanging out right here and we've had a lot of talk over the last couple of years about rates are going to come down soon, come down soon, come down soon. Well guess what? They could go even higher if that treasury yield goes higher. So the yield goes higher when the demand for treasuries is lower because they want you to buy treasuries and when the demand for treasuries is if the Fed buys up a bunch of treasuries then the yield will go lower. So anyway right now trying to entice folks to buy treasuries with that high yield and that's keeping interest rates up here but again don't think they couldn't go higher because they could. So sellers pay attention and buyers pay attention to this as well. When you put a home out there on the market now you have got to be priced competitively because you are competing with other sellers and more and more sellers every single week and buyers if you're hanging out waiting for that rate drop it may happen it may not it's a gamble and you know you need to move now is the time to move if you can hang out and wait and see what happens I guess wait and see what happens however if rates do jump up it's not going to be good for you even if prices go down so that's what's happening there now median price in San Diego County was up just a touch from March to April I think it was a half half a percent rise in median price kind of a lagging indicator I believe we are going to start seeing this number coming down again as we have seen in the summer of 2022 23 and 24 I believe a similar thing is going to happen now in 2025 only now inventory continues to rise and that is possibly going to make 25 look a little different than 24 23 and 22 but that remains to be seen so that's what's going on in San Diego real estate if you like this content please remember to like share subscribe and comment we will be back next week with more great real estate information for you so stay tuned for that until then we will see you soon