San Francisco - July 2025 Market Report

San Francisco Real Estate

Clients, friends, and colleagues,

Better late than never! My apologies for getting this update out later than usual. It’s been a busy July both personally and professionally. But there’s positive news on the San Francisco front…

Economic volatility in Q2, combined with the absence of any meaningful decline in mortgage rates, led to significant year-over-year weakening across much of the Bay Area. However, San Francisco bucked that trend, with median prices for single-family homes and condos up 4% and 10% respectively. After the pandemic-fueled flight to suburbia, are we now seeing a flight back to the city?

It’s certainly starting to feel that way, and the data supports it. Rent prices in San Francisco have been making national headlines, with average prices increasing 11% this year. This is a very encouraging metric for condo sellers. With interest rates in the mid 6s, many first-time buyers are choosing to rent instead of entering the purchase market. But as rent prices increase, and with already discounted prices on many downtown condos, the rent-versus-buy equation is starting to shift.

That said, the theme of this year in real estate, both in San Francisco and beyond, is discernment. Properties that check all the boxes - great condition, well prepped and staged, strong location, attractive pricing, and so on - are seeing strong demand and even bidding wars. On the other hand, properties with notable flaws - such as a poor floor plan, lack of parking, structural issues, limited natural light, dated finishes, or pricing that’s too aggressive - are often met with hesitation.

During these summer months, there are still good buying opportunities due to reduced demand. However, overall inventory remains low, in line with our typical seasonal slowdown. If you are waiting for more options, September is usually our biggest influx of new listings, beginning right after Labor Day.

If you have any questions about a specific property, the market, or the process in general, I am always here and happy to help.

Cheers,

Faye

Faye Dibachi

DRE #: 01349520

M: 415.577.0050

[email protected]

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won't be reflected in the data. "Homes" signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, or their MLS areas, unless otherwise delineated. Multi­county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.

Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities, views, lot size, quality of outdoor space, "bonus" rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis.