by Clay Gjevre
Reflecting on San Francisco Real Estate 2024
As we step into 2025, let’s take a moment to reflect on how the San Francisco real estate market closed out 2024. The market experienced some notable trends:

Median Prices Up: House and condo sales prices increased but remained well below the pandemic-era peaks of 2021-2022.
More Activity but Below Norms: New listings and sales rose compared to 2023, but volumes stayed below long-term averages. Buyers were cautious about rates, and sellers hesitated to list
Overbidding Returns: Overbidding increased, with properties selling faster than in 2023—a sign of pent-up demand. Many agents priced strategically and buyers competed for limited inventory.
Seasonal Slowdown: December was predictably quiet, but optimism for the new year is bringing buyers and sellers back into the market.
Insights for Buyers
Affordable Neighborhoods Shine:Sunset led the pack—82% of homes sold above asking compared to 53% for all of San Francisco. Areas like Bayview-Excelsior and Bernal Heights also saw strong demand.
All-Cash Offers on the Rise: All-cash buyers have an edge in competitive markets. With concerns about stock market stability, many are turning to real estate as a safer investment.
Navigating Interest Rates: Despite the Fed’s benchmark rate reductions in 2024, mortgage rates increased. With only two small rate cuts expected in 2025, buyers should plan for continued high borrowing costs. The bond market’s potential strengthening could impact rates further—making now a strategic time to buy.
Work with Great Lenders: We work with excellent lenders and mortgage brokers who can get you the best rates and tailor solutions to your needs. Have you heard about programs that reduce your rate if you hold funds at a bank?
Insights for Sellers
Limited Inventory Creates Opportunity: Tight inventory means well-priced and prepared homes can attract competitive offers. Buyers are in the market and ready to act—what they need are homes to purchase.
Seasonal Peaks: Spring and early fall remain peak selling seasons, but early 2025 has already seen strong buyer demand. Preparing your home early will help you capitalize on these trends.
Neighborhood Trends:
Highest Median Prices: Pacific Heights and Presidio Heights saw the highest prices and price-per-square-foot values but had longer days on market.
Highest Sales Volume: Inner Sunset, Central Sunset, and Richmond led the market with 511 of 1,451 homes sold citywide in 2024.
Economic Insights and the New Presidency 2024 brought a mixed economic picture:
Inflation eased slightly to 2.7%, and consumer confidence rose in the second half of the year.
Stock Market Growth boosted wealth, especially among affluent buyers.
Federal Policy: The Fed’s cautious stance suggests only minor rate cuts in 2025. It remains to be seen how the new presidential administration’s policies will impact housing affordability and the broader economy.
Looking Ahead to San Francisco Real Estate in 2025
Seasonality: Spring is expected to be the busiest market season.
Price Trends: In 2024, 50% of homes sold were in the $1M-$2M range, with 77% under $2M and only 11% over $3M.
Diverse Price Points: 50% of homes sold last year were $1M-$2M. Some of the most affordable properties right now are condos, especially in Soma and Civic Center where homes were selling for under $800 a square foot. Which is crazy because a few years ago SOMA was in high demand. For comparison, Pacific Heights exceeded $1,200 per square foot.
While dramatic rate drops aren’t expected, limited inventory and strong demand suggest a promising start to 2025. Buyers and sellers should stay informed and work with experienced agents to navigate this dynamic market.
Final Thoughts
Whether you’re buying or selling, 2025 offers opportunities amidst its challenges. Here’s a quick recap of the key trends shaping the market:
Mortgage Rates: Unlikely to decrease significantly, so buyers should plan for continued higher borrowing costs.
Home Prices: Holding steady or rising in many areas, reflecting strong demand. In general the rise in home prices outweighs the increase in interest rates in San Francisco if you’re playing the long game.
Housing Inventory: Remaining tight and not meeting buyer demand, creating a competitive landscape especially in high demand neighborhoods and price points.
Let’s connect to make the most of this dynamic market. Reach out if you have any questions—I’d love to help ensure your next purchase or sale is a success!
Clay Gjevre
San Francisco Realtor®
Vantage Realty DRE 02099237
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