We're at the midpoint of May and the San Diego coastal luxury market continues to show the divergence I've been tracking: strong absorption in the $2M–$5M range, more patient activity above $8M, and a persistent lack of new supply that is keeping sellers in a favorable position across most communities.
The First Half of May in Numbers
New listings in the first two weeks of May came in below the pace of April, continuing a supply-constrained pattern that has defined this market since Q1. Buyer demand, by contrast, remains consistent — particularly from out-of-state relocators and LA-area buyers treating San Diego's coastal communities as a relative value play.
| Community | Supply Trend | Demand Level | Price Momentum |
|---|---|---|---|
| Del Mar | Constrained | High | Upward |
| Rancho Santa Fe | Moderate | Steady | Flat–Upward |
| La Jolla | Low | High | Upward |
| Solana Beach | Very Low | High | Upward |
| Encinitas / Cardiff | Low | Strong | Flat–Upward |
Del Mar — Midpoint Check
Del Mar continues to be the market I watch most closely for early signals. The combination of extremely limited supply, high buyer intent, and a price ceiling that has been progressively moving upward over the past 18 months creates conditions where well-positioned sellers consistently outperform expectations.
Two notable transactions closed in the first week of May that I'm aware of — both in the $3M–$4.5M range, both above asking, both with relatively short escrow periods. The message to buyers: if you see something you want in Del Mar, move deliberately and quickly.
La Jolla — Renewed Buyer Activity
La Jolla is seeing a second wave of buyer activity that I attribute partly to spring seasonality and partly to buyers who paused in Q4 re-engaging with the market. The Bird Rock and La Jolla Shores sub-markets in the $2M–$4M range are the most active. La Jolla Farms and the upper tier ($8M+) remain more patient, with qualified buyers taking their time.
Buyers who are financing a portion of La Jolla purchases should have their jumbo loan fully approved — not just pre-qualified — before making offers. Sellers in this tier expect certainty.
What I'm Watching for the Second Half of May
- Expected new inventory in Solana Beach — one property on a premium street that has been off-market for 18+ months may be coming available
- Rancho Santa Fe Covenant activity: two significant estate showings this week to serious buyers — watch for announcements
- Rate sensitivity at the $3M–$5M jumbo tier: buyers in this range are more rate-conscious than those at $7M+, and any Fed communication this month will move this segment
- La Jolla oceanfront: the last three oceanfront properties in La Jolla have all sold in under 30 days. If another comes available, competition will be significant
The Bottom Line
Mid-May 2025 looks very similar to the first half of the month: a seller's market in most sub-segments, with buyers who are prepared and connected to off-market inventory having a meaningful advantage. If you're thinking about a move in the next 6–12 months on either side of the transaction, the conversation to have is now — before you need it.
"I publish these updates so you can make better decisions — whether you're a month away from listing or two years out from buying."