San Diego County Q2 2025
In spring, San Diego’s housing market didn’t surge—but it didn’t stall either. It moved with more caution, more listings, and a little more breathing room.
April started strong. Detached home sales were up 6.3% year-over-year, and pending sales rose too. By May, closings dropped 6.9%, and more listings began piling up. Inventory for detached homes was up over 25% compared to last year. That trend continued into June, with detached inventory up 27.1% and attached inventory up 37.3% year-over-year.
Latest National Real Estate Insights: Inventory Climbs, Demand Stays Uneven
Back in April, economic uncertainty spiked from a national perspective. That slowdown showed up in May’s sales, which fell short of last year’s numbers.
Since then, confidence has improved, and the stock market has rebounded. But that recovery hasn’t fully translated to stronger buyer demand—at least not yet.
Mortgage rates jumped earlier this year after new tariffs were announced. They’ve since held steady just below 7%. While that’s lower than a year ago, it’s still high enough to keep many buyers cautious.
Prices continued to rise in May nationally. The median sale price for single-family homes rose 5.4% year over year. Condo and co-op prices saw a modest 1.1% increase. This time of year usually brings more luxury sales, which can push the median higher. But price changes don’t always reflect a change in property value—they also depend on what kinds of homes are selling.
What the New Tax Bill Means for Real Estate
A sweeping tax reform bill — the One Big Beautiful Bill (OBBBA) — has officially passed Congress, bringing several changes that directly affect homeowners, real estate investors, and agents alike.
One of the most relevant updates is the increase and permanent extension of the Qualified Business Income (QBI) deduction, rising from 20% to 23%. This benefits many real estate professionals operating under pass-through entities such as LLCs, S corps, or sole proprietorships by reducing taxable income.
The bill also significantly raises the cap on State and Local Tax (SALT) deductions. Beginning in 2026, the limit increases from $10,000 to $40,000 and will be adjusted annually for inflation through 2030. This change is especially important for property owners in high-tax states and metro areas.
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