Real Estate Market Update for March 2025
What’s New in San Francisco Real Estate
Analytics and charts from Compass
As is the seasonal trend, the market continued to gain traction in February. The mortgage lock-in effect seems to be fading as prospective sellers are ready to move on after waiting three years for interest rates to fall back to the pandemic era’s record lows. With rates dropping in the new year, well-priced homes (particularly single-family homes) in desirable neighborhoods continue to attract plenty of interest from prospective buyers.
Incredible volatility in national and international politics continues to impact the broader market, even as interest rates have been declining. While it is impossible to predict what will happen next, odds are that the market will continue to pick up as the spring selling season nears. The March sales data next month will start to paint a clearer picture of market sentiment.
Home Sales Volume
In February of 2025, year-over-year sales were basically unchanged.
Home Value Trends
New Listings
While January saw a big increase in listings compared to the month before, new listings in February dropped slightly. However, we should see that increase as the spring market ramps up.
Active and Coming Soon Listings
The number of listings for sale continues to increase and, as of March 1, 2025, listings were slightly up year over year. Of the listings, 26.5% were houses and 73.5% were condos, co-ops, TICs, and townhouses.
Listings Accepting Offers
The volume of listings going into contract in February 2025 was basically the same as in February of 2024.
Average Days on Market
Houses typically sell faster than condos and both property types usually sell fastest in the busy spring and early fall markets.
Listings Accepting Offers
The absorption rate for houses was about 40% and for condos, about 20%.
Sales Over List Price
Overbidding percentages for houses has been much more common than for condos. Overbidding typically peaks in the spring, but has already seen a rebound in February 2025.
Overbidding List Prices
The overall percentage of properties that sold over list price was 58% in February 2025. Overbidding for houses alone was 81% while for condos it was 39%.
Price Reductions on Active Listings
While remaining relatively low, the number of price reductions in February 2025 rose 28% year over year.
House Price Trends
The median house sales price in February 2025 was slightly down compared to February 2024.
Condo Price Trends
The median condo sales price in February 2025 was down about 10% compared to February 2024.
Mortgage Rates
As of March 6, 2025, the 30-year fixed-rate mortgage interest rate declined for the seventh week and saw the largest weekly decline since mid-September, coming in at 6.63%.
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.
