New Market Conditions

San Diego’s real estate market is shifting. After years of low housing supply, the number of homes for sale is rising sharply. As of July 2025, active listings in San Diego County are up more than 50% year over year, with over 5,600 homes on the market compared to just 3,400 a year ago. This change is reshaping how buyers, sellers, and mortgage brokers approach the process.

At Lending Bee, we help clients adjust their mortgage strategy to match these new market conditions. Rising inventory means more choices, more negotiating power, and new financing opportunities—but only if you have the right mortgage plan in place.

Inventory Growth Is Rebalancing the Market

The increase in listings is creating a more balanced market. For years, limited inventory pushed home prices higher and created intense bidding wars. Buyers had to act fast, often skipping inspections and offering over the asking price just to compete.

Now, the landscape is different. Properties are sitting on the market longer, especially attached homes like condos and townhomes. According to local data, days on market in San Diego have increased 40% compared to last year. That gives buyers more time to shop, negotiate, and get approved for the right mortgage.

Price Pressure Is Easing

While detached single-family homes are holding steady at a median price of about $1.07 million, attached homes have started to dip. Condos and townhomes have seen price drops of nearly 7% in some neighborhoods. This cooling effect is welcome news for buyers who were previously priced out of the market.

With more options and less competition, buyers can be selective—and sellers are more willing to negotiate. This new flexibility directly impacts mortgage planning. Buyers may now qualify for smaller loan amounts, or they might opt for loan products they couldn’t access in a tighter market.

How Mortgage Strategies Are Evolving

A changing housing market calls for a smarter, more adaptive mortgage approach. At Lending Bee, we tailor strategies to match current inventory trends and rate conditions.

Lower Home Prices Improve Loan Options

As prices adjust, borrowers can explore more affordable loan structures. For example, buyers who previously needed a jumbo loan for a condo may now qualify for a conforming loan, which typically has lower rates and easier approval terms. FHA and VA loans also become more accessible when home prices dip, helping first-time buyers and veterans enter the market.

Lending Bee works closely with clients to evaluate which loan programs offer the best terms based on their price point, down payment, and long-term goals.

Rate Locks Become More Strategic

Even with more homes available, interest rates remain a major factor. Mortgage rates in San Diego currently range between 6% and 7% for 30-year fixed loans. These rates affect monthly payments significantly, so timing is critical.

We encourage clients to get preapproved early and lock in rates when favorable. With inventory rising, buyers have more time to compare homes—but they shouldn’t wait to secure a good interest rate. At Lending Bee, we monitor rate trends daily and help clients lock when it makes the most financial sense.

Adjustable-Rate Mortgages Gain Popularity

In this higher-rate environment, more borrowers are exploring adjustable-rate mortgages (ARMs). Products like 5/1 and 7/1 ARMs offer lower initial interest rates, which can be ideal if buyers plan to refinance or move within a few years.

Rising inventory also opens up short-term ownership opportunities. Buyers who purchase at a discount today may plan to sell or refinance once prices stabilize or rates drop. Lending Bee helps clients weigh the pros and cons of ARMs based on their financial timeline.

Slower Sales Open More Opportunity

With homes sitting on the market longer, buyers have a chance to do their homework. Rushed decisions are no longer the norm, and that’s a win for smart financing.

More Time for Inspections and Appraisals

Buyers now have time to conduct full home inspections, appraisals, and due diligence. This reduces the risk of buying a home with hidden problems or overpaying due to emotional bidding.

At Lending Bee, we help buyers structure their mortgage contingency periods to allow enough time for property evaluations while still keeping their offer competitive. This balance is key to avoiding delays or costly surprises at closing.

Negotiation Power Shifts to Buyers

Sellers are increasingly offering concessions. These might include covering closing costs, paying for rate buydowns, or offering credits for home repairs. Lending Bee helps clients take advantage of these incentives and fold them into the overall mortgage strategy.

For instance, a seller-paid rate buydown can significantly reduce your interest rate in the first few years of the loan—helping lower monthly payments during the most budget-sensitive period.

Planning for Future Refinancing

Although mortgage rates are still elevated compared to pandemic lows, many analysts predict gradual decreases in late 2025 and into 2026. This makes refinancing a key part of today’s mortgage strategy.

At Lending Bee, we build refinance planning into the initial mortgage conversation. If you’re buying now with a higher rate, we’ll monitor market shifts and notify you when a refinance could save money. We also make sure the original loan product doesn’t include costly prepayment penalties or refinancing restrictions.

Breaking the Rate-Lock Gridlock

Many current homeowners are hesitant to sell because they’re “locked in” to ultra-low mortgage rates from past years. But as prices cool and inventory grows, more of these owners may decide to list—bringing even more inventory into the market. This shift could increase options for buyers and create better comps for appraisals.

We help clients prepare to act quickly when attractive refinance or purchase opportunities arise, especially when inventory surges further.

Tailored Mortgage Solutions from Lending Bee

Every buyer is different. That’s why Lending Bee offers personalized guidance at every stage of the mortgage process. We help clients:

  • Compare fixed-rate vs. adjustable-rate mortgages based on timing and budget
  • Evaluate whether jumbo, conforming, FHA, or VA loans make the most sense
  • Use seller concessions to offset costs or lower interest rates
  • Lock in rates early and refinance later if the market improves
  • Stay informed on San Diego’s market trends and mortgage rate forecasts

Our team stays ahead of the data so our clients can make smart decisions without stress. Rising inventory creates opportunity—but only for those who are prepared.