Spring Has Sprung, And So Have Median Sale Prices

The Big Story

Quick Take:

Median home sale prices bounced back in a big way in April, as the spring selling season kicked into gear with nearly a 1% year-over-year increase.
Inventory levels continue to climb, with new listings pouring onto the market as sellers look to capitalize on the busier spring months.
Existing home sales are essentially flat on a year-over-year basis, as rising mortgage rates give buyers a reason to pause.

📈 Home Prices Are Picking Back Up

After several months of relatively flat activity, home prices gained momentum in April. The median home price climbed to $417,700, marking the third straight month of increases after prices bottomed out earlier this year.

At the same time, mortgage rates have started creeping back up. The average 30-year rate rose to 6.46%, up from March’s recent low of 6.00%. That pushed the average monthly payment to about $2,115, though payments are still slightly lower than they were this time last year.

For buyers in San Diego, this means affordability has improved compared to 2024 — but rising rates could slow how quickly prices continue to climb moving into summer.

🏠 More Sellers Are Entering the Market

Spring inventory is building quickly as more homeowners decide to list.

New listings rose to 477,116 nationwide in Apri
Inventory climbed to 1.47M homes available for sale

This is giving buyers more choices than they’ve had in quite some time, especially compared to the tight inventory conditions of the past few years.

While supply is improving, inventory levels are still not considered fully “healthy,” meaning desirable homes in strong San Diego neighborhoods can still move quickly when priced correctly.

👀 Buyers Are Still Moving Carefully

Even with more listings hitting the market, buyer activity has remained fairly steady rather than surging. Existing home sales saw only slight growth in April, suggesting many buyers are still taking a cautious approach.

A big reason may be the recent increase in mortgage rates. After several months of declining rates, the jump back up to 6.46% may have caused some buyers to pause and wait for more stability before making a move.

If rates settle down again heading into summer, we could see demand pick back up more meaningfully.

⚖️ The Market Is Moving Toward Balance

Right now, the housing market is in a bit of a balancing act. Inventory is increasing, but buyer demand hasn’t fully returned yet, which means homes are sitting slightly longer than they were a year ago.

Historically, around three months of inventory signals a balanced market in California. We’re gradually moving closer to that direction, though conditions can still shift quickly depending on where mortgage rates go next.

If rates rise further, buyers may continue to hold back. But if rates ease again, the growing inventory could get absorbed quickly — especially in markets like San Diego where demand tends to stay strong.National trends only tell part of the story. In San Diego, limited supply and consistent demand continue to shape the market differently than many other areas across the country.

If you’re curious about what’s happening in your specific neighborhood — whether prices, inventory, or buyer activity — I’m happy to share a more local breakdown.

🌴 Local Take

While these are national trends, San Diego tends to react faster due to strong demand and limited supply.

If you want to see how this is playing out in your neighborhood — whether you’re buying, selling, or just keeping an eye on your equity, I’m happy to break it down for you.