MARKET REPORT
Q1 2025 SAN FRANCISCO
Momentum Meets Opportunity - Q1 2025 San Francisco Market Update
Spring has officially sprung, and with it comes a fresh wave of real estate activity in San Francisco. We’re entering one of the most interesting markets we’ve seen in a while — a mix of renewed buyer energy, limited inventory, and a surprising drop in mortgage rates that’s shaking things up in a big way.
The first quarter of 2025 showed strong momentum, with buyer activity on the rise and sales outpacing last year. Single-family home sales were up 13% year-over-year, and condo sales rose 11%. The luxury market (homes $3M+) also saw impressive growth with a 10% increase in transactions compared to Q1 2024.
Inventory remains tight, especially for single-family homes, where Months Supply of Inventory (MSI) is just 1.4. Condos are slightly more balanced at 3.1 months, but both segments are experiencing a competitive spring landscape that continues to favor sellers — especially in sought-after neighborhoods.
Now let’s talk mortgage rates, because this is where things get especially compelling.
Rates just dropped significantly — a welcome shift for buyers, even if it came alongside a bit of portfolio volatility. But as we know, when the wind shifts, so does the agenda — and if there’s one thing we’ve learned in recent years, it’s that things can change quickly. That’s why we’ve been preparing our clients for exactly this kind of moment.
SO HOW ARE BUYERS FEELING?
Cautious, curious, and quietly ready. Market volatility creates opportunity, and the savviest buyers are the ones who are ready to act. We’ve been partnering closely with our Wealth Advisory partners to help clients navigate this landscape smartly — whether that’s through non-purpose loans (which allow access to portfolio funds without liquidating investments) or diversifying holdings for those heavily concentrated in one stock (which, let’s be honest, is common around here).
Where rates stand as of 4/4:
• 30-Year Fixed : 6.250% (no points, APR 6.239%)
• 10/6 ARM : 5.625% (no points, APR 6.152%)
• 7/6 ARM : 5.500% (no points, APR 6.266%)
• 30-Year Fixed w/ 10-Year Interest Only: 6.375% (no points, APR 6.376%)
THE BOTTOM LINE?
The spring market is here, and it’s moving fast. Buyers have a rare window of increased purchasing power, while sellers are benefiting from tight supply and motivated demand. Whether you’re considering a move, a buy, or simply curious about how to make the most of this moment — now’s the time to talk strategy.
Wherever you are in your real estate journey, I’m here to help you navigate it with confidence and care. Let’s connect.
SINGLE FAMILY HOMES
$ PER SQUARE FOOT
END OF MONTH INVENTORY WENT INTO CONTRACT
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Year-Over-Year Comparison
MEDIAN HOME VALUES
SINGLE FAMILY
CONDOMINIUMS
$ PER SQUARE FOOT
END OF MONTH INVENTORY WENT INTO CONTRACT PROPERTIES SOLD
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Year-Over-Year Comparison
MEDIAN HOME VALUES
CONDOMINIUMS
