Real Estate Market Update for February 2025
What’s New in San Francisco Real Estate
Analytics and charts from Compass
While the broader economic and political climate has been volatile with the new administration, the year in San Francisco real estate began with a typical seasonal rebound. New listings and listings going into contract have bounced back from the lower counts in December, and should continue to rise as we had towards the spring market. As for the “boots on the ground” perspective, buyer demand seems to be picking up. I have been writing offers for buyers and am seeing strong competition and multiple offers for well-priced homes.
Home Sales Volume
January’s lower sales volume reflects the typical December slowdown in the market. Year over year, January 2025 sales increased by about 25%.
Home Value Trends
New Listings
New listings soared in January, after the seasonal slowdown in December, which will fuel sales in February.
Active and Coming Soon Listings
While the number of listings is increasing, as of February 1 new listings were slightly down year over over.
Listings Accepting Offers
The number of listings accepting offers in January was higher year over year and should continue to surge as we approach spring.
Average Days on Market
Listings Accepting Offers
The absorption rate in January jumped dramatically from the unusually low rate in December of 2024. For houses, the rate was about 35% and for condos about 22%.
Sales Over List Price
Overbidding percentages for houses continue to outpace the rates for condos.
Overbidding List Prices
Overbidding for houses was 59% in January, while for condos it was 19%.
Price Reductions on Active Listings
House Price Trends
The median house sales price in January was unchanged year over year, but it typically climbs quickly to its peak in the spring.
Condo Price Trends
In January 2025, the median condo sales price was about 2% lower than in 2024.
Mortgage Rates
Despite predictions otherwise, instead of dropping in Q4 2024 and early 2025, interest rates increased, even as the Fed reduced its benchmark rate. However, as of February 13, 2025, the 30-year fixed-rate mortgage reached its lowest level so far this year, at 6.87%.
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.
