San Francisco’s housing market is showing strong signs of recovery as 2025 begins, with buyer activity on the rise despite a year-over-year drop in median home prices. While prices for single-family homes and condos have declined by 9.5% and 9.0%, respectively, demand remains resilient. Sales are up, homes are selling faster, and competition is increasing.

With mortgage rates dipping below 7% and the Federal Reserve keeping interest rates steady, the market is poised for an active spring. Below are key insights from the February 2025 market update.

Key Market Trends and Data

Single-family median price: $1,425,000 (-9.5% year-over-year)
Condo median price: $990,000 (-9.0% year-over-year)
Single-family homes spending 26 days on market (-19 days year-over-year)
Condos spending 68 days on market (-2 days year-over-year)
Single-family home sales up 30.8%
Condo sales up 13.2%
More single-family homes selling above list price (58.8%, up from 50.5%)
Condos selling over asking decreased slightly (17.8%, down from 19.3%)

Single-Family vs. Condo Market Comparison

Single-family homes are experiencing stronger demand than condos, with sales up nearly 31% compared to 13% for condos. The median days on market for single-family homes has dropped by 19 days, indicating faster sales, while condos have seen only a slight two-day improvement. More than half of single-family homes are selling above asking price, compared to just under 18% of condos.

Overall, the market for single-family homes is more competitive, with buyers moving quickly in response to limited inventory and steady demand.

Neighborhood Market Highlights

Most Expensive Single-Family Home Median Home Values

Pacific/Presidio Heights: $6.05M, $1,414 per square foot
Marina/Cow Hollow: $3.89M, $1,318 per square foot
Cole Valley/Haight: $3.70M, $1,203 per square foot

Most Competitive Single-Family Markets (Highest Over Asking Percentage)

Sunset: 119.2% of list price received
Mission: 112.6% of list price received
Bernal Heights/Glen Park: 112.1% of list price received

Top Condo Markets (Highest Median Prices)

Pacific/Presidio Heights: $1.63M, $1,132 per square foot
Marina/Cow Hollow: $1.58M, $1,180 per square foot
Noe Valley: $1.50M, $1,038 per square foot

Best Value Condo Markets (Lowest Prices Per Square Foot)

SOMA: $759 per square foot
Bayview/Hunters Point: $600 per square foot
Diamond Heights: $753 per square foot

What’s Next for San Francisco Real Estate?

As the spring selling season approaches, the market is expected to gain momentum. Inventory levels are rising, mortgage rates have softened, and demand remains strong. With more buyers re-entering the market and competition increasing, it is shaping up to be a busy season for both buyers and sellers.

Thinking of buying or selling? Now is the time to strategize. Reach out to schedule a quick conversation to review your goals.

Lauren Dorsey is a San Francisco-based real estate agent helping buyers and sellers navigate the market. Reach out to schedule a quick call to chat through your questions HERE.

San Francisco Real Estate Market Update – February 2025