January 2025: San Francisco Real Estate Market Report
We’ve officially kicked off 2025, and San Francisco’s real estate market is already making waves. After a year of shifting interest rates, price adjustments, and evolving buyer behavior, we’re seeing some fascinating trends take shape.
In this month’s market update, I’ll break down the latest sales data, price movements, and key economic factors influencing San Francisco real estate. Whether you’re thinking about buying, selling, or just keeping an eye on the market, this report will give you the insights you need to navigate the months ahead.
San Francisco Home Prices: A Modest Increase in 2024
Despite economic uncertainties and rising mortgage rates, San Francisco’s median home price rose about 4% in 2024 compared to 2023, closing the year at $1,625,000. This increase signals a stabilizing market after a turbulent period of adjustments following the pandemic-era highs of 2021.
When looking at appreciation trends over the past few decades, 2024’s 4% year-over-year growth is a return to a more balanced pace, especially after the sharp 13% drop in 2023. While prices aren’t surging like they did in the high-tech boom or pandemic years, they are holding steady—an encouraging sign for long-term investors and homeowners.
Luxury Market Highlights: Prestigious Sales Across SF Neighborhoods
San Francisco’s luxury market remained active in 2024, with high-end sales spread across some of the city’s most sought-after neighborhoods. Here’s a look at median house prices in select luxury neighborhoods:
Presidio Heights – $7,000,000 (high sale: $24,000,000)
Pacific Heights – $5,500,000 (high sale: $70,000,000 off-market)
Cow Hollow – $4,650,000 (high sale: $8,050,000)
Sea Cliff – $4,500,000 (high sale: $26,000,000)
Russian Hill – $3,025,000 (high sale: $22,100,000)
These numbers illustrate how home values vary across different areas, driven by location, property features, and buyer demand.
Condo Market: Prices Holding Steady
Condos, which have had a slower appreciation rate compared to houses, saw a modest 1% increase in median sales price in 2024. The median condo price now sits at $1,135,000, still below its peak in 2021 but showing resilience despite fluctuating interest rates.
When looking at long-term appreciation trends, condos have seen greater volatility than single-family homes, especially as new developments shift the mix of available inventory.
Mortgage Rates: A Surprise Rebound
Many experts predicted that mortgage rates would decline in late 2024, but instead, rates rebounded higher despite the Federal Reserve reducing its benchmark rate. As of January 2, 2025, the average 30-year fixed mortgage rate sits at 6.91%.
This increase could put pressure on buyers who were hoping for more affordability in the new year. However, historically, San Francisco’s luxury market has remained strong even in higher-rate environments, with many high-net-worth buyers making all-cash purchases.
What to Watch in 2025
As we move into the new year, here are the key trends I’ll be keeping an eye on:
Mortgage Rate Movement
Will rates decline as expected later in 2025, or will they remain elevated?
Spring Market Activity
Historically, the strongest selling season starts in March—will we see a surge in listings and sales?
Luxury Market Trends
How will demand for high-end properties continue as stock market performance influences buyer confidence?
San Francisco’s real estate market remains dynamic, and whether you’re planning to buy, sell, or simply stay informed, I’ll be here to keep you updated every step of the way. If you have any questions or want to discuss your real estate goals, don’t hesitate to reach out!
Until next month,
Marina
