DECEMBER 2025 NEWSLETTER

Christmas Market Update

The Christmas season has a way of sneaking up on us. Suddenly our homes are filled with lights, lists, laughter, and a little extra chaos. Whether your house is full of family or you’re enjoying some quiet time, I hope this season brings comfort, joy, and moments that matter.

As the year wraps up, thank you for trusting me to be there for you and your home. In a busy world, I hope the holidays remind us to slow down, be kind, and appreciate the place we call home.

Wishing you a Merry Christmas and a safe, happy holiday season.

Affordability Trends (December 2025)

Housing affordability remains a major challenge in California and San Diego, even as the market cools and buyer psychology shifts.

Local San Diego home values have softened slightly year-over-year, with median sale prices down about 2.0% compared to last year, but still well above what many buyers can comfortably afford.

Affordability pressures aren’t just about price — rising mortgage costs, property insurance challenges, and limited supply continue to squeeze buyers. Many potential buyers remain sidelined because payment requirements still outpace income growth, even with small seasonal rate declines.

Across California, housing affordability is expected to remain low, though forecasted to improve slightly next year.

Key Market Data Highlights (December 2025)

• Median home prices in San Diego: ~steady with minor year-over-year decline, still near high cost levels.

• Inventory: Seasonal reduction typical for year-end, limiting options for buyers.

• Mortgage rates: Remain above long-term historic lows but trending slightly lower than mid-2025 peaks.

• Buyer demand: Cautious, with many waiting for 2026 conditions.

Mortgage rates have improved and price growth has cooled, yet buyer activity remains slower than expected. So what’s holding everyone back as we head into December?

Waiting for rates to drop even more

• Holiday distractions and year-end slowdown

• Prices still stretching affordability

• Economic and job uncertainty

• Limited inventory choices

• Sellers adjusting prices and offering concessions

• Homeowners holding onto sub-4% rates

   

December is typically quiet, but motivated buyers are finding opportunities while many sit on the sidelines. Sometimes less competition makes all the difference.

“Kelly was incredible throughout the whole process! She was responsive (even when on vacation!) to calls, texts and emails. She always had great suggestions and offered help whenever needed. I highly recommend Kelly for your buying and selling needs!“

★ ★ ★ ★ ★

Sandi V.

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