San Francisco, CA Real Estate Insights – March 2025


What Real Estate Professionals Need to Know Now

San Francisco remains one of the most competitive and unique real estate markets in the country. With limited inventory, fluctuating mortgage rates, and evolving buyer trends, staying ahead of market shifts is crucial for both buyers and sellers.

As of March 2025, San Francisco’s housing market is stabilizing after experiencing fluctuations in 2023–2024. Prices have seen modest appreciation, while buyers are finding more negotiating opportunities. Whether you're working with homebuyers, sellers, or investors, this report delivers actionable insights to help you navigate the market effectively.

This in-depth analysis includes exclusive Buyer & Seller Scores, key trends, and strategic takeaways for real estate professionals.

Market Overview

San Francisco’s market remains segmented—some neighborhoods are experiencing strong demand, while others are seeing price adjustments. Luxury markets are softer, while mid-range properties under $1.5M continue to sell steadily.

Current Market Conditions (March 2025)

  • Median Home Price: $1,320,000 (+1.8% YoY)

  • Median Single-Family Home Price: $1,700,000 (+2.1% YoY)

  • Median Condo Price: $1,050,000 (+1.2% YoY)

  • Price per Square Foot: $975 (+2.0% YoY)

  • Homes Sold (Last 30 Days): ~320

  • Average Days on Market (DOM): 38 days (longer than pre-pandemic levels)

  • List-to-Sale Price Ratio: 97.5% (buyers negotiating more than in previous years)

  • Months of Inventory (MOI): 2.8 months (approaching a balanced market)

Current Market Trends

  • Mortgage Rates Stabilizing: Currently at ~6.75%, giving buyers improved affordability.

  • Luxury Market Faces Challenges: Homes above $2M are taking longer to sell due to financing concerns.

  • Strong Demand in the $1M–$1.5M Range: These properties are moving quickly due to a mix of first-time homebuyers and investors.

  • Price Sensitivity is Rising: More sellers are making price reductions before closing.

  • Return-to-Office Trends Impacting Condos: Some downtown condo prices remain lower than peak 2021 levels.

Buyer & Seller Scores – March 2025

Buyer Score: 54/100

The Buyer Score of 54 suggests buyers have gained more leverage compared to previous years, although the market still slightly favors sellers.

Buyer Advantages:

  • More Negotiation Power: Price reductions and closing cost assistance are more common.

  • Lower Mortgage Rates Improve Affordability: Compared to 2024, monthly payments are slightly lower.

  • Luxury Buyers Can Find Deals: Properties above $2M are seeing extended DOM, giving buyers leverage.

Buyer Challenges:

  • Affordability Still a Concern: Even with rate adjustments, home prices remain high.

  • Limited Single-Family Home Inventory: Well-priced homes under $1.5M still attract multiple offers.

Seller Score: 72/100

The Seller Score of 72 indicates a seller’s advantage, though the market is not as overheated as previous years.

Seller Advantages:

  • Homes Under $1.5M Sell Fast: This segment continues to attract strong demand.

  • Strong Rental Market Supporting Investors: Many buyers are still active, particularly in rental-friendly areas.

  • Well-Priced Homes Move Quickly: Properties in desirable locations continue to receive strong offers.

Seller Challenges:

  • Luxury Homes Taking Longer to Sell: Fewer buyers are in the market for $2M+ homes.

  • More Price Sensitivity: Overpricing can lead to extended time on market.

Top 3 Takeaways for Real Estate Professionals

Buyers Have More Room to Negotiate: Slightly increased inventory and declining mortgage rates mean more options and negotiating power.

Sellers in the Luxury Market Need to Adjust Expectations: Pricing strategies and incentives will be key for higher-end properties.

The $1M–$1.5M Segment is the Sweet Spot: Homes in this range continue to sell quickly with competitive offers.

Outlook for 2025 and Beyond

Future Projections for Buyers and Sellers

  • Home Prices Expected to Rise Modestly: Prices are projected to increase 2.3%–3.7% over the next 12 months.

  • Mortgage Rates May Decline Further: Experts predict rates may drop to ~6.25% by late 2025, potentially increasing buyer competition.

  • Inventory Will Remain Limited: San Francisco’s market constraints will continue to impact supply.

What This Means for Buyers:

🏡 Act before rates drop further—increased affordability could lead to more competition and higher prices later in 2025.

What This Means for Sellers:

🏡 Now is a strong time to list, particularly for properties under $1.5M, where demand is highest.

💬 Utilizing This Content – Messaging for Social Media & Client Outreach

3 Key Messages for Real Estate Professionals

📢 "San Francisco’s Housing Market is Stabilizing! With more inventory and lower rates, buyers have better opportunities than last year. Let’s strategize your next move!"

📢 "Homes Under $1.5M Are Selling Fast! If you’re thinking of selling, now is the time to maximize your property’s value with strong buyer interest!"

📢 "Luxury Buyers: More Room to Negotiate! High-end properties are staying on the market longer—if you're in the market for a luxury home, now is a great time to buy!"

📌 Action Steps

🏡 Buyers: Get pre-approved now and start exploring opportunities before mortgage rates decline further.

🏡 Sellers: Price competitively and consider offering incentives to attract serious buyers.

For expert guidance on buying or selling in San Francisco, contact Pacific Residential Partners today.

📍 Visit www.findebhomes.com for real-time market insights and professional support.



External Links

· Most Recent Mortgage Insights

· Freddie Mac 30-Year Fixed Mortgage Rate Update