San Francisco Real Estate Market Update – January 2025

The Bay Area real estate market saw modest price declines in Q4 2024, but home values are poised for growth in 2025. With mortgage rates remaining high—averaging 6.91% as of January—buyers and sellers are adjusting to a new normal. Despite elevated borrowing costs, home sales surged 6.1% year-over-year, driven by increased inventory and growing buyer confidence.

Key takeaways from the latest MarketTracker Report:

• Mortgage Rates & Policy: The Federal Reserve cut interest rates by 1% in late 2024, but mortgage rates remain between 6-7% due to economic uncertainty.

• Market Trends: While inventory tightened in Q4, demand remained strong, keeping home prices relatively stable.

• Bay Area Outlook: January prices may see minor declines before rebounding in spring and summer, continuing a historically seasonal pattern.

With inventory expected to shift, now is a critical time to explore your options. Whether you're buying or selling, understanding these trends will help you make informed decisions.

📞 Thinking about buying or selling in San Francisco? Contact Charlie Brown today for expert guidance.