‘The housing market is stuck’: San Diego price gains remain at bottom of U.S. rankings

San Diego home price gains remained near the bottom of national rankings in May, far from the breakneck pace seen a year ago.

The San Diego metropolitan area’s home price increased 0.37% annually, said the S&P Case-Shiller Indices report released Tuesday. San Diego had the No. 2 biggest gains in the U.S. at this time last year, up 9.1% in a year.

San Diego metro area, which includes all of San Diego County, is not alone in a slowdown, with nationwide price gains falling to a 22-month low.

Lisa Sturtevant, chief economist at Bright MLS, said economic uncertainty, high mortgage rates and unaffordable home prices are likely to keep sales activity low.

“The housing market is stuck, with both prospective buyers and sellers increasingly concerned about the economy and their own personal financial situations,” she said.

National home prices rose 2.25% on average, but some markets turned negative: Tampa’s prices were down 2.42%, and San Francisco and Dallas were both down 0.64%.

Many East Coast and Midwest markets went against the grain. The New York metro area saw price gains increase the most in the nation, up 7.37% in a year. It is the largest metro area in the U.S., and includes New York City, parts of New York state, much of New Jersey and Connecticut, and Long Island. Other markets near the top were Chicago, up 6.09% and Detroit, up 4.87%.

The Case-Shiller index tracks repeat sales of identical single-family houses — and are seasonally adjusted — as they turn over through the years. It is often seen as a bellwether of the economy as a whole.

San Diego County’s median home price for single-family homes in May was $1 million, said Attom Data Solutions, remaining one of the most expensive markets in the nation. The median is the point at which half the homes sold for more and half for less.

Zillow senior economist Orphe Divounguy said price reductions may be the only way sales increase — even though it hasn’t happened much in San Diego County yet.

“While sales continue to bounce along the bottom, price adjustments could support a modest increase in sales over the coming year,” he said.

There were 2,284 home sales in San Diego County in May, lower than at some points during the Great Recession. Meanwhile, homes are taking longer to sell. The median number of days on market for a county home in May was 25, said the Redfin Data Center. That’s up from 16 days at the same time last year, and 12 days in 2023 and 2022.

In May, there were 5,664 homes listed for sale here — the highest level since November 2019 — said the St. Louis Federal Reserve, using data from Realtor.com.

Nicholas Godec, head of fixed income at S&P Dow Jones Indices, said the typically busy spring buying season was not enough to affect the market.

“Seasonal momentum is proving weaker than usual, and the slowdown is now more than just a story of higher mortgage rates,” he said. “It reflects a market recalibrating around tighter financial conditions, subdued transaction volumes and increasingly local dynamics.” He said with affordability still stretched and inventory constrained, home prices “are holding steady, but barely.”

Annual price growth by metropolitan area

S&P/Case-Shiller Home Price Index, May 2025

New York: 7.37%Chicago: 6.09%Detroit: 4.87%Cleveland: 4.82%Boston: 4.64%Washington, D.C.: 3.31%Las Vegas: 3.30%Charlotte: 2.55%Minneapolis: 2.50%Seattle: 1.82%Atlanta: 1.70%Portland: 1.30%Los Angeles-Anaheim: 1.09%Phoenix: 0.91%Miami: 0.55%San Diego: 0.37%Denver: -0.01%Dallas: -0.64%San Francisco: -0.64%Tampa: -2.42%

National: 2.25%