Real Estate Market Update for September 2025
What’s New in San Francisco Real Estate
Analytics and charts from Compass
While the summer market saw no large shifts beyond typical seasonal changes, San Francisco remains one of the strongest markets in the Bay Area. Following typical seasonal patterns, early fall usually starts with a surge in new listings, providing a substantial boost to sales activity.
On September 16, the average rate on the 30-year fixed mortgage dropped 12 basis points to 6.13%, the lowest level since late 2022. And on September 17, as anticipated, the Federal Reserve lowered interest rates by a quarter of a percentage point, while indicating that two more cuts are also possible this year.
Home Sales Volume
The number of home sales in August 2025 decreased from July, but remained the same compared to August 2024. Houses made up around 45% of sales, while condos, co-ops, TICs, and townhouses accounted for 55%.
New Listings
After the slower summer months, we typically see the highest monthly count of new listings in a year in September, when the fall selling season gets underway.
Active and Coming Soon Listings
As of September 1, 2025, the number of listings for sale fell from the previous month and also declined year over year. Listing inventory should increase in September, as is typically the case.
Listings Accepting Offers
Listings going into contract in August decreased, as is typical for the end of summer. We will see this figure rebound in September.
Average Days on Market
For houses the average days on market in August was 34 days, while for condos, it was 73 days.
Sales Over List Price
For houses, the average was sales price was 12% above the list price, while for condos, it was 2.5% below list price. Overall, the overbidding percentage was 47%of all sales, but for houses alone it was 70%, and for condos it was 25%.
Price Reductions on Active Listings
Price reductions typically peak in October, before the start of the winter holidays.
House Price Trends
The median house sales price in August was down from the spring, but up about 3% compared to August 2024.
Condo Price Trends
The median house sales price in August increased by a bit more than 1% compared to August 2024.
Mortgage Rates
According to Freddie Mac, as of September 4, 2025 the 30-year fixed-rate mortgage continued to decline to 6.5%, its lowest reading since October 2024.
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.
