Demand Remains Strong in a Changing Market
San Diego’s housing market is experiencing a notable shift. While the frenzy of bidding wars and record-breaking prices has eased, demand remains strong, and lending practices are becoming more refined. At Lending Bee, we help clients navigate this evolving landscape with tailored mortgage solutions that match today’s smarter, more strategic environment.
Here’s why experts agree: San Diego is on the path to a more stable, opportunity-filled real estate market—and why Lending Bee is the best partner to guide you through it.
San Diego continues to attract both buyers and investors, even as interest rates and affordability pressures reshape buyer behavior. The region’s natural beauty, vibrant economy, and limited housing supply make it a perennial hotspot.
Population Growth and Job Stability
San Diego’s population growth is steady, and its economy is anchored by strong industries like biotech, defense, and tourism. These sectors bring consistent employment opportunities, keeping housing demand resilient. Homebuyers relocating from more expensive markets—such as San Francisco and Los Angeles—often find better value in San Diego’s coastal neighborhoods and suburban communities.
Inbound Buyers and Lifestyle Appeal
The region’s lifestyle remains a major draw. With year-round sunshine, coastal access, and strong school districts, San Diego offers a high quality of life that continues to attract buyers of all ages. This enduring appeal helps keep the real estate market active, even during slower economic cycles.
More Inventory, Less Urgency
Over the past few years, buyers faced intense competition, multiple offers, and skyrocketing prices. That pressure has eased, creating a more balanced market. At Lending Bee, we’re seeing more clients take advantage of this window—where there’s less urgency and more room to negotiate.
Homes Staying on the Market Longer
While quality homes in desirable areas still move quickly, many listings are staying active for several weeks instead of just days. The median time on market has stretched slightly, giving buyers more time to evaluate options and make informed offers.
Sale Prices and List Prices Aligning
Homes are now selling much closer to their list prices. The sale-to-list price ratio in San Diego hovers just under 1.0, a clear sign that bidding wars are less common. Almost half of homes are selling below asking price, providing more leverage for buyers—especially those with solid financing in place.
Interest Rates and Lending Trends
While mortgage rates remain elevated compared to the historic lows of 2020 and 2021, the lending landscape is becoming more flexible and client-focused. Lending Bee is leading this shift, offering smarter financing solutions for today’s buyers.
Rates May Ease, But Strategy Still Matters
As of mid-2025, interest rates remain in the 6% to 7% range. While this has cooled some buyer activity, most analysts expect gradual rate declines into 2026. According to projections from the National Association of Realtors, existing home sales are likely to rise 6% in 2025 and 11% in 2026, with home prices increasing modestly at 3% to 4% annually.
Zillow projects a 2.3% home value increase over the next year. These forecasts suggest that the market is stabilizing—not declining. That’s why now is an ideal time for buyers to lock in competitive rates and prepare for appreciation ahead.
Smarter Loan Products for Today’s Market
Lending Bee offers a wide range of mortgage products designed to meet the needs of today’s borrowers. Adjustable-rate mortgages (ARMs), interest rate buydowns, and specialized loan programs for self-employed borrowers or investors provide more flexibility in a market where every point matters.
Our team works one-on-one with clients to identify the best financing solution—whether you’re buying your first home, moving up, or purchasing investment property.
Opportunity for Buyers, Sellers, and Investors
The shift toward a more balanced market benefits all sides of the real estate equation. Whether you’re a buyer, seller, or investor, this environment rewards strategic thinking and personalized financing. Lending Bee is your partner in making the most of it.
Buyers Have More Leverage
Today’s buyers have more room to negotiate and greater access to inventory. While home prices are still high, they’re not increasing at the rapid pace seen in recent years. For buyers with strong credit and pre-approval, there’s opportunity to secure favorable terms and find the right property without overpaying.
At Lending Bee, we help buyers strengthen their offers by ensuring fast, reliable loan approvals and competitive rates. We also offer guidance on how to use buydown programs and closing cost credits to reduce upfront costs.
Sellers Still Hold Value with the Right Strategy
Sellers can still achieve strong outcomes, especially when they price homes realistically and offer creative incentives. Buyers are more likely to engage with listings that include rate buydown offers or closing cost assistance—tools that Lending Bee helps structure as part of the financing process.
We also work closely with agents to ensure that sellers’ offers are appealing from a lending standpoint, making transactions smoother for all parties.
Investors See Stability and Growth in Multifamily
Multifamily properties in San Diego continue to perform well. With vacancy rates around 4.5%—well below the national average—and rental demand staying strong, investors are finding solid returns.
Rents are projected to grow around 2.5% annually, and Lending Bee offers DSCR (Debt Service Coverage Ratio) loans and investor-friendly programs that allow for streamlined financing based on rental income. These flexible options are ideal for buyers looking to expand or diversify their portfolios.
Lending Bee: Your Expert Mortgage Partner in San Diego
Lending Bee offers more than just loan approvals—we provide insight, strategy, and long-term value. Our team of experienced loan officers understands the unique demands of San Diego’s housing market. We stay ahead of local trends and national shifts to ensure every client receives the best financing available.
Personalized Service for Every Buyer
We take the time to understand your goals. Whether you’re buying your dream home, refinancing for better terms, or investing in income property, Lending Bee provides custom loan solutions that align with your needs. Our transparent process and fast turnaround times keep transactions on track and stress-free.
Local Knowledge, Competitive Advantage
San Diego’s market requires a lender who understands its nuances. Lending Bee combines local market expertise with national lending resources to deliver unmatched value. We guide you through every step—from pre-approval to closing—with clear communication and proactive problem-solving.
Looking Ahead: A Market with Room to Grow
San Diego’s real estate market is entering a healthier, more sustainable phase. Buyers have more choice. Sellers can still command strong prices with the right presentation. And investors are seeing steady demand and long-term rental income potential.
As interest rates gradually adjust and lending products continue to evolve, now is the time to act. Lending Bee ensures you’re prepared for what’s next—by making smarter lending accessible, efficient, and tailored to your future.