Real Estate Market Update for January 2025
What’s New in San Francisco Real Estate
Analytics and charts from Compass
In 2024, the median house sales price increased year over year. The numbers of new listings and sales rose from 2023, but volumes remained well below long-term norms. There was a slight reduction in overbidding statistics, and, on average, listings took somewhat longer to sell. As usual, December was the slowest month for both new listings and listings going into contract. Activity typically rebounds early in the year and then accelerates rapidly into spring, which usually sees the year’s most heated market conditions.
Home Sales Volume
In 2024, sales volume increased 11.5% from 2023, but remains well below historical standards.
Sales volume in December and January are typically at their lowest levels and then increase into the spring.
New Listings
New listings in 2024 increased 5.5% from 2023, but remain relatively low compared to long-term trends.
Active and Coming Soon Listings
Inventory in January is typically low, but can be expected to increase as they year gets underway.
Listings Accepting Offers
Listings going into contract hit their lowest point of the year, as is typical in December.
Average Days on Market
Houses continue to sell at a much faster rate than condos.
Sales Over List Price
Overbidding percentages for houses continue to well outpace those for condos.
Overbidding List Prices
Houses typically see higher overbidding percentages than condos. The disparity between the two property types has increased significantly since the pandemic.
Median Home Values
Median prices per square foot increased in 2024 for both houses and condos.
House Price Trends
The median house sales price in 2024 rose about 4% from 2022.
Condo Price Trends
The median condo sales price in 2024 increased by 1% from 2023.
Macroeconomic Factors
Macroeconomically, 2024 offered a few ups and downs. The inflation rate dropped from 3.1% to 2.7%, but the decline was not as large or consistent as hoped. In September, the Fed reduced its benchmark rate for the first time in 4 years, followed by 2 more cuts in November and December. Confounding expectations, interest rates then rose, ending the year higher than when it began. The Fed also released a tentative forecast of only 2 small rate reductions in 2025, though it may alter this future “guidance” depending on economic developments. Despite significant volatility, stock markets saw very substantial appreciation in 2024. Consumer confidence rose in the second half of the year to end 6% higher than a year earlier and seems poised to improve further.
The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information.
