According to Compass.com, San Francisco's real estate market showed a noticeable uptick in activity this February, with more listings going into contract, faster sales, and a higher frequency of homes selling above the asking price. Unlike other Bay Area markets that have seen an increase in available inventory, San Francisco’s number of homes for sale has remained steady over the past four years. As has been the case since the pandemic, single-family homes continue to be in higher demand than condominiums—although the luxury condo and co-op segment experienced a significant surge in sales during the first two months of 2025.
Looking at broader economic factors, the real estate market is navigating a complex financial landscape. In early March, inflation ticked upward for the fourth consecutive month, while the Federal Reserve opted to keep its benchmark interest rate unchanged. Mortgage rates, however, have declined for the seventh straight week. Meanwhile, stock markets saw two weeks of significant losses. Political and economic uncertainties remain high, contributing to a decline in consumer confidence across all demographics, according to the University of Michigan’s February “Surveys of Consumers.”
As we enter the spring season—historically the most active time for home sales—San Francisco’s market is expected to heat up even further. This period often brings the highest median sales prices of the year, making it an important time for buyers and sellers alike to stay informed and strategic.
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Source: Compass.com
