The real estate experts Ryan Serhant and Barbara Corcoran state that the 2025 housing market is undergoing changes and even greater news is that it is not going to be experiencing a crash like most people are predicting. The process of buying or selling homes in San Diego has undergone significant changes since the previous few years. The market conditions have evolved so much that opportunities still exist but you need to understand what to seek.
It’s Not a Housing Crisis—It’s an Affordability Crisis
CEO of SERHANT, Ryan Serhant rejects the notion that the U.S. is in a full-fledged housing crisis. He made this point in a recent interview with Fox Business, where he said that the real issue is affordability.
“I don’t think there actually is necessarily a housing crisis the way you see and you read about it. I think there’s an affordability crisis.” — Ryan Serhant
What does that mean? Well to simply put home prices are not crashing. But for many homebuyers, out there buying a home has never been more difficult.
While some areas have more homes on their market, much of that inventory is not entry level or budget friendly. In fact, a starter home now costs over $1 million in 237 American cities—a shocking reality for first time buyers. At the same time, renters are also feeling the strain, with rental prices taking up a significant portion of household incomes.
“Over half of all renters are spending more than 30%, sometimes more than 40 or 50% of their paycheck just on their rent.” — Ryan Serhant
Right now based on the data, the money goes toward housing expenses instead of savings or future home buying. People want to buy homes but affordability stands as the main obstacle.
Why Sellers Are Holding Out
Home prices remain stable because sellers do not feel pressured to sell their properties. Barbara Corcoran explained during another interview that she believes even small mortgage rate drops will not lead to an increase in new listings.
“No one wants to move, and there are fewer houses to choose from at higher rates. So it’s difficult for homebuyers.” — Barbara Corcoran
Consider this situation: A person who secured a 3% mortgage rate during 2020 would probably avoid switching to a 7% interest rate. Homeowners are choosing to maintain their current mortgages, which reduces the number of available homes for sale.
Sellers also tend to avoid reducing their asking prices when homes become available on the market.
“I don’t think it’s in the nature of sellers to be realistic, honestly. Their house is always worth more… I don’t think prices will shake out at all. I think they’ll hold out hoping interest rates will go down again.” — Barbara Corcoran
The market conditions have resulted in properties staying on the market for extended periods of time. The Redfin report shows that 54.5% of active listings during the end of 2024 spent more than sixty days on the market. The market’s reduced activity compared to previous years represents a transition toward balanced market conditions which provide buyers with extended periods to decide without facing intense bidding competitions.
What This Means for You
So, what’s the takeaway? The market isn’t stuck forever—it’s just changing.
- For buyers: The market conditions still shows there is affordability challenges but on the up side homebuyers face reduced bidding competitions and extended property listing durations. The current market conditions give homebuyers additional negotiation power and reduced urgency to make immediate buying decisions.
- For sellers: Real estate prices continue to inflate but take note that homebuyers have become more selective about their purchases. A competitive listing price combined with a home ready for occupancy will generate the most interest from potential buyers if you need to sell your property.
- For renters: Rental prices stay elevated because people choose to stay in their homes but those who will buy real estate during the next few years should begin building their financial strength now.
Every market requires smart moves, which can be achieved through proper planning. The essential factor for success involves staying well-informed while making strategic decisions through collaboration with qualified real estate professionals who can guide you through market changes. Real estate requires individuals to concentrate on their personal targets while seeking suitable prospects that exist for those who know what to look for.
The San Diego 2025 Housing Market
The 2025 Housing Market trends that Serhant and Corcoran mentioned in San Diego are currently active throughout March. The San Diego-Carlsbad metro area shows this affordability crunch through its current median home price of $939,174. The housing market in North Park and South Park continues to attract many buyers despite a minor decrease from last year because these neighborhoods have median home prices of $950,000 and $1.15 million, respectively.
The rental market in University Heights shows the same pressure Serhant explains because renters must extend their saving period before becoming homeowners. The high prices in Pacific Beach at $1.3 million median and Downtown San Diego with one-bedroom rents reaching $3,200 continue to rise because of lifestyle and location preferences despite a small increase in inventory to 4,600 listings from 2,600 last year.
The market trend supports Corcoran’s observation about sellers maintaining their position, but buyers in some neighborhoods now have some room to negotiate prices since homes stay on the market for longer periods.