San Francisco Real Estate Market Update – May 2025

In May 2025, San Francisco's real estate market showed signs of subtle momentum, with closed sales up 2.2% month-over-month. The median sales price increased slightly to $1.35M—a 1.6% rise from April and a 2.1% annual gain—signaling slow but steady growth. Homes are selling faster, with days on market dropping to 27, down from 32 last year, suggesting heightened buyer activity.

Despite economic headwinds and ongoing affordability challenges, new listings rose by 7.8%, while active inventory also ticked up by 4.9%. However, pending sales declined by 4.5%, showing that many buyers are still on the fence. The market remains moderately competitive, with 60.3% of homes selling over asking, though average sales price dropped slightly to $1.629M.

The condo and TIC market experienced softer growth, with a median price of $1.085M, representing a 5.3% increase year-over-year. Condos are taking longer to sell than single-family homes but still show signs of resilience.

In summary, San Francisco's market is balancing cautious optimism with ongoing affordability and economic concerns. Inventory is increasing, but competition remains—making it a good time for both buyers and sellers to stay informed and act strategically.

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The May 2025 MarketTracker reveals a dynamic real estate landscape shaped by national and local shifts. Nationally, home prices continue to rise, with a 2.75% year-over-year increase in median purchase prices. Mortgage rates are slowly decreasing, with 30-year averages at 6.63%. However, inventory levels are surging—up nearly 20%—while sales have slightly declined, reflecting consumer uncertainty amid economic events like the trade war.

Locally, Santa Cruz County saw a break in its upward streak, with median home prices falling by 8.57% compared to last year, while San Mateo and Santa Clara Counties saw price increases of 1.69% and 5.50% respectively. Inventory across Silicon Valley is up, with single-family home and condo listings rising sharply, leading to a 30% and 51.29% year-over-year jump in active inventory. Despite this, homes are still selling quickly—within 8 days in Santa Clara and around two weeks elsewhere.

The market remains competitive: San Mateo and Santa Clara stay in seller’s territory with only 1.7 months of supply, while Santa Cruz leans towards a buyer’s market at 3.5 months. Condos are now considered a buyer’s market across the board.

📍 Whether you’re buying, selling, or observing, understanding these trends is crucial.

🏡 May 2025 Market Snapshot - Bay Area Real Estate Trends

This month’s Markettracker reveals a dynamic and shifting landscape in both national and Bay Area real estate markets. Nationally, inventory levels have surged by 20% year-over-year, while existing home sales have slightly declined, reflecting growing uncertainty among buyers. Despite this, mortgage rates have slowly dipped to 6.63%, nudging median home prices upward and slightly lowering monthly payments—potentially signaling opportunity for buyers.

Locally, the Bay Area tells a more complex story. Inventory growth varies widely—East Bay listings jumped by 43%, while San Francisco faces a shortage. Pricing trends are equally diverse: Santa Cruz saw an 8.57% drop in single-family home prices, but San Francisco condo prices spiked 9.13%, breaking a five-month decline. Across most of the region, single-family homes remain in seller’s market territory, while the condo market increasingly favors buyers.

Despite growing inventory, homes continue to sell quickly—often within 8 to 15 days—showing sustained buyer demand. With potential rate drops on the horizon and new listings surging, this could be the window for savvy buyers to act.