The San Francisco real estate market is showing resilience as we move from spring into summer 2025, with single-family homes demonstrating particular strength despite broader economic uncertainties. As your top SF Realtors, we keep up with these trends to provide you with the most accurate and actionable to-the-minute info. Let's dive in.
Despite recent economic volatility injecting uncertainty into the spring season, the San Francisco real estate market (particularly for single-family homes) has remained surprisingly robust. While many Bay Area communities have seen inventory increases of 70% or more, San Francisco's supply rose by a modest 9% year-over-year.
The stock market, which often correlates closely with SF real estate activity, has recovered substantially from early-April fluctuations, with the S&P 500 now just shy of its all-time high. This positions potential homebuyers more favorably for the remaining spring and upcoming summer seasons.
What about mortgage rates?
Conventional 30-year fixed mortgage rates hover around 7% in May 2025. However, our San Francisco homebuyers often secure rates that beat the headline rate by 1% or more through banking relationships and alternative financing options. Along with a robust stock market, this advantage significantly impacts purchasing power in the city.
The San Francisco housing market continues to show marked differences between property types. Single-family homes remain in tighter supply compared to condominiums, with dramatically different absorption rates: 36% overall but just 20% for condos.
Some price trends worth noting:
New listings have increased from March to April, continuing the typical spring acceleration pattern. Active listings as of May 1st were approximately 9% higher than last year, with 29% being houses and 71% being condominiums, co-ops, and TICs. Pending sales also rose during this period, increasing by about 3% year-over-year, a trend that has slightly intensified market competition.
The speed of sale varies dramatically across San Francisco neighborhoods, providing valuable insights for both buyers and sellers.
House Market by District:
Condo Market by District:
These neighborhood variations highlight why working with experienced real estate agents in San Francisco who understand these micro-markets is essential for success.
The luxury segment of the San Francisco real estate market continues to follow its typical seasonal pattern: spring surge, summer slowdown, fall rebound, and winter dip. While $5+ million sales have stabilized compared to last year, the market has recovered significantly from its 2023 downturn though still remains below the 2021 peak.
Interestingly, luxury house sales above $5 million decreased by 40% year-over-year in April, while luxury condo sales above $2.5 million increased by nearly 40%, reaching their highest point in three years. This divergence presents both challenges and opportunities for sellers and buyers in different price segments.
For sellers, properties in absolute move-in condition, professionally staged, aggressively priced, and in prime locations continue to command premium prices and multiple offers. Our seller services are specifically designed to position your property for maximum appeal in this competitive environment.
For buyers, understanding these nuances is crucial for crafting winning strategies in different neighborhood and property-type contexts. Our team's buyer services provide the expertise needed to navigate this complex landscape.
As we move into summer, several factors suggest the San Francisco real estate market will remain relatively stable with continued strength in the single-family home segment. The recovering stock market, coupled with the city's perennial appeal and limited housing supply, creates a foundation for ongoing demand despite higher interest rates.
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Ready to make your next move in the San Francisco housing market? Buying or selling, we’re here to guide you through every step of the process. Contact us today to discuss your personal situation and real estate goals. We’d love to help!
