San Francisco - May 2025 Market Report

San Francisco Real Estate

Clients, Friends, and Colleagues,

Here’s a quick summary of what’s happening in the San Francisco real estate market. Like much of the Bay Area, it’s a mixed bag right now, with some neighborhoods performing extremely well and others seeing slower activity.

• Interest rates are still hovering around 7%

• Stock markets have rebounded sharply since early April, though they’re still roughly flat for the year

• April’s inflation reading came in at 2.3%, the lowest since 2021

• San Francisco’s housing market is holding up better than most other Bay Area counties, with fewer price cuts and stronger buyer interest

While many parts of the Bay Area experienced more uncertainty and volatility in April, San Francisco stayed relatively stable. Demand for housing remained solid, especially for single-family homes. The condo market, on the other hand, continued to feel softer. Some buyers are showing signs of hesitation, adjusting to both personal financial questions and broader economic uncertainty.

Compared to this time last year, the number of homes for sale in San Francisco rose about 9%. That’s a much smaller jump than in other parts of the Bay Area, where inventory increased by 70% or more. The number of listings going into contract in April saw a slight uptick, though closed sales declined. Price reductions stayed flat year over year, even as they spiked in many neighboring counties. The median sale price for single-family homes was unchanged from April 2024, while condo prices slipped a bit.

Homes that are fully move-in ready, professionally staged, priced competitively, and located in sought-after areas are still getting the most attention. These are the listings that tend to move quickly and attract multiple offers.

As of early May, the Federal Reserve has kept its benchmark interest rate unchanged. Mortgage rates are still near 7%, and the stock market has largely recovered from the early April dip. However, consumer confidence dropped significantly last month due to political and economic uncertainty. The data in this report covers sales that mostly went into contract before that turbulence began. May’s numbers will offer a clearer look at how the recent shifts are affecting the market.

If you have any questions about a specific neighborhood or property, I’d be happy to chat.

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.