San Francisco - September 2025 Market Report

San Francisco Real Estate

Clients, friends, and colleagues:

Our fall season is off to a strong start with interest rates continuing their downward trend, currently at ~6.25% for the average 30-yr fixed. We're getting close to that 6% range that many analysts believe is required to significantly boost buyer demand. With the current drops, alongside rising rent, we're already starting to see more demand in the fall market. Single-family homes and boutique condos in prized locations remain very competitive (with several record breaking prices in recent weeks), with our more urban/higher density products still largely presenting buyer opportunities.

But remember, interest rates have been extremely volatile in recent years, with big, sudden changes in direction common - as occurred last year in late summer/early autumn (interest rates went from ~7% in early June to ~6% in late September). The last inflation reading was unchanged at 2.7%, but the more recent Producer Price Index saw its largest monthly increase in over 3 years (signaling rising inflation). The Fed reduced the federal funds rate by .25% last week, and has signaled expectations for more rate cuts later in the year.

The AI boom continues to gain traction in San Francisco, helping it remain one of the strongest markets in the Bay Area. AI captured a record $15B in VC funding in Q2 of 2025 alone, with Open AI, Anthropic, and Databricks expanding their footprints and event hosting in the city.

Stock markets have hit new all-time highs in the past month, a big positive for affluent real estate markets like SF.

The Dow is +8.6% YTD

Nasdaq is +16.4% YTD

Besides the usual review of standard supply and demand dynamics, this report also contains detailed information about San Francisco's neighborhood markets.

If you have any questions about the market or a specific property, I'm always happy to help.

Cheers,

Matt

You're Invited!

Please let me know if you have any questions

or if I can be of assistance in any way.

Matt Wathen

DRE# 01879082

M: 415.920.3213

[email protected]

National and regional statistics are generalities, essentially summaries generated by thousands of unique, individual listings and sales occurring across different market segments. They are best seen not as precise measurements, but as broad, comparative indicators with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, and last period data should be considered preliminary estimates which may be revised in future updates. Different analytics programs sometimes define standard statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: What is most meaningful are not specific numeric calculations but the trends they illustrate. Data from sources deemed reliable, but may contain errors, and subject to revision. All numbers to be considered approximate, and how these analyses apply to any particular property is unknown without a specific comparative market analysis.