San Francisco’s real estate market demonstrated positive momentum in the first quarter of 2025, with buyer activity increasing and sales outpacing last year’s numbers. The number of sales rose 13% for single-family homes and 11% for condominiums compared to Q1 2024. The luxury market also showed notable growth, particularly for properties priced over $3 million, which saw a 10% year-over-year increase in the number of homes sold.
However, inventory remains tighter than last year, contributing to a competitive environment. Months Supply of Inventory (MSI) currently stands at just 1.4 for single-family homes and 3.1 for condominiums. This imbalance continues to highly favor sellers in the single-family home segment, while the condo market offers a slightly more balanced, yet still active, landscape.
Adding to market optimism, mortgage rates have been relatively stable following their decline in January through February. The 30-year fixed-rate mortgage dipped by two basis points last week, hovering at 6.65%. This stability is providing a boost to potential buyers, as reflected in the recent rise in mortgage purchase applications.
With strong demand and constrained supply, the San Francisco real estate market is on track for an active spring selling season.
