San Francisco Real Estate Market Update – January 2025

As we step into 2025, the San Francisco real estate market continues to evolve with notable trends impacting both buyers and sellers. Understanding these shifts is crucial for making informed real estate decisions in the City by the Bay. In this January 2025 market update, we’ll break down key metrics, analyze year-over-year changes, and explore what this means for those looking to buy, sell, or invest in San Francisco real estate.

Market Overview: What’s Happening in San Francisco?

The San Francisco market is known for its dynamic nature, and January 2025 was no exception. While we saw an increase in inventory, buyer demand was strong enough to absorb the new supply, which led to higher pending and sold listings. However, despite this surge in demand, home prices experienced a slight dip compared to last year.

Key Takeaways from January 2025:

✅ New listings increased by 18.4% year-over-year.
✅ Pending sales jumped by 22.6%, showing continued buyer demand.
✅ Sold listings surged by 34.1%, confirming strong market activity.
✅ Median sales price dropped by 9.7%, making it more attractive for buyers.
✅ Days on market decreased to 48 days, indicating homes are selling faster.
✅ Active listings declined by 9.5%, meaning lower overall inventory.
✅ Homes sold for an average of 6% above list price, showcasing a competitive market.

Now, let’s take a deeper dive into the single-family home and condo markets in San Francisco.

Single-Family Homes: A High-Demand Market

San Francisco's single-family home market remains competitive despite a moderate decline in median home prices. Buyers are taking advantage of available inventory, and demand is quickly absorbing new listings.

Key Stats for Single-Family Homes (January 2025 vs. January 2024):

📌 New Listings: 219 (Up 18.4%)
📌 Pending Sales: 130 (Up 22.6%)
📌 Sold Listings: 122 (Up 34.1%)
📌 Median Sales Price: $1,422,000 (Down 9.7%)
📌 Average Sales Price: $2,708,000 (Down 7.8%)
📌 Days on Market: 48 days (Down from 58 days)
📌 Active Listings: 210 (Down 9.5%)
📌 Percentage of Homes Sold Above List Price: 57.4% (Up 13.7%)
📌 Percentage of List Price Received: 106% (Up from 104.6%)
📌 Months Supply of Inventory: 1.1 months (Down from 1.5 months)

What This Means for Buyers & Sellers

🔹 For Buyers: While home prices are down compared to last year, the competition remains high, with many homes selling over asking price. Buyers should be prepared to act quickly and make competitive offers.

🔹 For Sellers: Even though prices have dipped slightly, demand remains very strong. With fewer active listings, sellers can still attract multiple offers, potentially driving higher-than-expected final sale prices.

Condo, TIC, and Co-Op Market: A Mixed Bag

San Francisco's condo market has seen an increase in new listings, but demand has also grown significantly, keeping market activity strong. However, condo prices have declined, likely due to a backlog of older listings that sat on the market and sold at discounted prices.

Key Stats for Condos, TICs, and Co-Ops (January 2025 vs. January 2024):

📌 New Listings: 407 (Up 17.6%)
📌 Pending Sales: 206 (Up 34.6%)
📌 Sold Listings: 131 (Up 12%)
📌 Median Sales Price: $990,000 (Down 10%)
📌 Average Sales Price: $1,292,000 (Down 10.1%)
📌 Days on Market: 96 days (Up from 87 days)
📌 Active Listings: 566 (Down 8.9%)
📌 Percentage of List Price Received: 98.4% (Up slightly from 96.8%)
📌 Months Supply of Inventory: 2.8 months (Down from 3.4 months)

What This Means for Buyers & Sellers

🔹 For Buyers: With condo prices decreasing, now is a great time to purchase. Buyers may have more room for negotiation, especially for units that have been on the market for a while.

🔹 For Sellers: Although demand is steadily increasing, pricing your condo competitively is key. Proper marketing, staging, and strategic pricing will help attract serious buyers.

Why Are Home Prices Declining Despite High Demand?

Typically, when demand outpaces supply, home prices increase. However, in January 2025, prices declined despite increased demand.

Possible Reasons for This Market Shift:

📉 December Inventory Surge: Many of the homes that closed in January went under contract in December, a historically slower market period where sellers may accept lower offers to move properties before year-end.

💰 Buyers Snapping Up Older Inventory: The demand may have focused on homes that had been sitting on the market, leading to lower final sales prices.

🏡 Condos vs. Single-Family Homes: The condo market tends to have longer days on market, affecting overall pricing trends, while single-family homes remain highly competitive.

Despite these factors, the market fundamentals remain strong, and as we move into the spring market, we anticipate continued buyer interest and potential price corrections.

What’s Next for San Francisco Real Estate?

Looking ahead, several factors will shape the 2025 market:

✅ Spring Market Surge: As we enter the traditionally busy spring season, we expect more new listings and continued buyer competition.
✅ Interest Rate Trends: Mortgage rates will play a big role in affordability and buyer activity.
✅ Tech Sector Influence: San Francisco’s job market, particularly in tech and finance, continues to impact real estate demand.
✅ Urban Revival: Areas like SOMA and downtown are seeing a renewed interest, which could drive more condo sales.

Final Thoughts: Should You Buy or Sell in 2025?

📍 For Buyers: Prices are more affordable than last year, but demand remains strong. Be prepared to act fast, secure financing, and work with an expert to navigate the competitive market.

📍 For Sellers: Inventory is still relatively low, meaning your home can attract multiple offers if priced and marketed correctly. Selling sooner rather than later may help take advantage of the current demand.

🏡 Thinking about buying or selling in San Francisco? Work with a trusted real estate expert who can help you navigate this shifting market with confidence.

📞 Call us today: 650-293-0158
📧 Email us: [email protected]