San Diego Real Estate Market Recap: 2024

As we step into 2025, it’s time to reflect on the trends and developments that defined San Diego’s real estate market in 2024. From shifting inventory levels to fluctuating mortgage rates, here’s an in-depth look at how the market fared and what prospective buyers, sellers, and investors can take away.

Market Overview

San Diego’s real estate market in 2024 continued to display resilience despite broader economic uncertainties. With its desirable coastal location, strong job market, and vibrant lifestyle, the city remained a magnet for homebuyers both locally and nationally. However, the market wasn’t without its challenges:

• Median Home Prices: The median home price in San Diego remained steady, closing the year at approximately $950,000. While this represented a slight year-over-year increase, the growth rate was slower compared to the booming post-pandemic years.
• Inventory Levels: Inventory remained tight, with a 10% decrease compared to 2023. This shortage continued to create a competitive environment for buyers.
• Mortgage Rates: Mortgage rates fluctuated throughout the year, averaging around 6.5%, making affordability a key concern for many buyers.

Key Trends in 2024

1. Rise of Multifamily Developments San Diego saw a surge in multifamily housing projects, particularly in urban neighborhoods like Downtown, North Park, and Little Italy. These developments aimed to address the ongoing housing shortage and provide more affordable options for residents.
2. Shift Toward Suburban Living Many buyers looked to suburban areas such as Chula Vista, Poway, and Santee for more space and relative affordability. These areas experienced increased demand, driving up home prices and reducing days on market.
3. Sustainability in Housing Sustainable and energy-efficient homes gained popularity in 2024. Features like solar panels, smart home systems, and energy-efficient appliances became must-haves for eco-conscious buyers.

Neighborhood Highlights

• La Jolla: Luxury homes in La Jolla continued to attract high-net-worth individuals. The area’s coastal charm and prestigious schools kept demand strong despite higher interest rates.
• Pacific Beach: Pacific Beach remained a hotspot for younger buyers and investors seeking vacation rental opportunities, benefiting from San Diego’s thriving tourism industry.
• East Village: East Village experienced significant growth in new apartment and condo developments, catering to professionals seeking urban living with convenient access to amenities.
• Del Cerro and San Carlos: These family-friendly neighborhoods gained attention in 2024 for their excellent schools, community feel, and proximity to Mission Trails Regional Park. Michael Willis, a local Realtor and Appraiser, specializes in helping clients navigate the real estate opportunities in Del Cerro and San Carlos, where homes with spacious lots and mountain views are in high demand.

Opportunities for Buyers and Sellers

• For Buyers: While competition remains fierce, the cooling price growth in late 2024 presents an opportunity for those looking to enter the market. Consider working with a local real estate agent like Michael Willis, an experienced Realtor and Appraiser, who understands San Diego’s nuances, especially in Del Cerro and San Carlos, to navigate the competitive landscape.
• For Sellers: Low inventory levels put sellers in a strong position. However, pricing competitively and making strategic updates to your property can help attract multiple offers. Michael Willis can provide an accurate appraisal and market insights tailored to neighborhoods like Del Cerro and San Carlos to ensure you get the best return on your investment.

Looking Ahead to 2025

As we move into 2025, expect San Diego’s real estate market to remain robust, with continued demand for housing across various price points. Key factors to watch include:

• Potential stabilization of mortgage rates.
• Ongoing efforts to increase housing supply.
• Emerging technologies shaping real estate transactions.

San Diego’s real estate market is as dynamic as the city itself. Whether you’re a buyer, seller, or investor, staying informed about local trends is essential for making confident decisions.

Need Expert Guidance? Looking to buy or sell in San Diego? Partner with Michael Willis, a trusted Realtor and Appraiser specializing in Del Cerro, San Carlos, and other key neighborhoods. Maximize your opportunities in this vibrant market by contacting Michael today for a consultation and take the next step with confidence.