San Francisco - October 2025 Market Report

San Francisco Real Estate

Clients, friends, and colleagues:

In the words of our chief market analyst here at Compass, "San Francisco has seen an astonishing strengthening of its real estate market in recent months." Rents are rising at the fastest rate in the country, median sales prices have risen year over year, and September sales & number of listings going into contract all soared higher in September.

It's now popular opinion that San Francisco is truly on the rebound, as our streets continue to be filled with more workers, new skyscrapers have been greenlit & broken ground, and with the combination of rising rents and softening interest rates (near 6%), first-time buyers are becoming more engaged.

Some broader metrics:

Inflation ticked up 3% year-over-year. Per the WSJ: "Inflation edges up, but less than expected...The data gives the Fed a clear path for widely expected rate cuts heading into its remaining meeting this year."

Stock markets are happy: Dow is +13% YTD & Nasdaq is +24% YTD (all-time high)

With real estate markets (and especially San Francisco) being known for their 'boom and bust' nature, it seems we are welcoming our next boom, presumably due to the rapidly accelerating AI start-up economy.

While many properties across the city are feeling this revitalized demand, some sectors are still presenting strong opportunities for buyers.

If you have any questions about the market or specific property, I am always here and happy to assist.

Cheers,

Faye