San Diego Home Prices Post Steepest Quarterly Jump Since 2022

San Diego’s residential real estate market ended the second quarter with a surprising flourish, as the median sale price for existing homes jumped 6.9% from the same stretch in 2025, landing at $876,000 according to CoreLogic’s preliminary June report.

The sharp uptick underscores renewed pressure on local buyers, many of whom had hoped high interest rates would cool prices by summer. But limited supply, steady high-earning migration, and growing demand – especially in popular neighborhoods west of I-5 – are trouncing expectations and keeping buyers in high-stakes competition for homes.

Mission Hills, Chula Vista Among Hotspots

While citywide numbers tell one story, neighborhood-level action reveals even more volatility. In Mission Hills, the median price for a detached home rose to $1.57 million, up 11% from last June. Agents at Berkshire Hathaway’s India Street office described near-record attendance at recent open houses along Fort Stockton Drive. Meanwhile, in Chula Vista – much further south but still red-hot – median values climbed 7.2%, with busy weekends at model homes on Heritage Road as new construction tries to meet pent-up affordability demand.

San Diego Association of Realtors president David Andelman said inventory in June hovered at 1.7 months – far below the 4-5 month range considered healthy – with just 2,350 active listings across the entire county as of June 30. Some sellers, especially in Scripps Ranch and Carmel Valley, are fielding multiple offers within days, while first-time buyers gravitate to South Bay’s newer single-family developments.

Data Snapshot: Q2 Price Movement

Data from Zillow bolsters the sense of urgency: only 60 days was the average time on market for homes closing in Q2, compared with 75 a year ago. The highest year-on-year price gains were logged in North Park (8.5%) and Rancho Bernardo (9.1%). Across county lines, Oceanside remained comparatively affordable with a median of $741,000 – still a 5% increase since last June. Rents haven’t eased pressures either, holding at an average $2,920 for a two-bedroom on Park Boulevard, according to Apartment List’s June survey.

Mortgage rates in San Diego County averaged 6.59% for a 30-year fixed at the end of Q2, little changed from last year but a jump from the sub-3% levels seen before 2022. Market analysts blame the shortage of available homes: new permits for multifamily projects remain well below pre-pandemic trends, with fewer than 940 new units breaking ground in the quarter, per the Downtown San Diego Partnership.

What Buyers and Sellers Should Watch Now

The third quarter is shaping up to be another gauntlet for local home seekers. With nearly every price segment seeing multiple bids and open house traffic surging on streets from La Jolla Shores Drive to Otay Lakes Road, buyers should remain prepared for rapid timelines and aggressive offers, especially for properties under $1 million. Meanwhile, homeowners considering listing may want to act before a widely expected rise in new inventory later this year – especially as mortgage rate trends no longer strongly favor sellers. For those priced out for now, city leaders point to San Diego Housing Commission initiatives like the Homeownership Assistance Program, though funding remains limited against demand.

Sharp quarterly gains have become the norm in post-pandemic San Diego – for now, the region’s status as a migration magnet continues to drive housing pressure, no matter the season or the rate environment.