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2025 is Here: What's Next for SF Real Estate?

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2025 is Here: What's Next for SF Real Estate?

As we say goodbye to the first month of the new year, the San Francisco real estate market is brimming with fresh opportunities and renewed energy. Buyers are motivated with the promise of more inventory, luxury properties are outperforming expectations and competition for quality homes is fierce, 2025 is shaping up to be another dynamic year in real estate!

Looking ahead, the emerging shift to hybrid and in-office work is creating new housing demand patterns across the city, especially in neighborhoods with strong transit access and proximity to major employment centers. Another key factor driving the market is migration patterns, with some residents returning to the Bay Area for its diverse community, cultural amenities, and political climate. Whether you’re considering buying, selling, or investing, San Francisco remains a hub for visionaries, offering stability and growth for the future.

Below, you’ll find real estate newsupcoming listingsavailable homes, and recent sales. Plus, don’t miss our spotlight featuring some of our 2024 Transformationsfun things to do around San Francisco, and our team’s top pick of the month! 

As always, feel free to reach out to us with any real estate-related questions. Whether you’re ready to buy, sell, or explore your options, we’re here to help. If you need assistance outside of San Francisco, our national network of agents is ready to help you, your friends, or your family.

Dale: 415.748.1519 | Alla: 415.748.2550

In 2024, we’ve been honored to transform many incredible spaces into standout successes for our clients. Here are just a few of our favorite projects📍

With a clear vision, a winning strategy, the perfect vendor team, and a standout marketing plan, we’re here to help you unlock your property’s full potential. Ready to elevate your home’s value? Let’s chat about our exclusive premarket transformation package and how we can make your home shine! 🏡✨

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In 2024, San Francisco median house and condo sales prices increased year over year, driven by strong demand. The number of new listings and sales rose compared to 2023, and luxury home sales outperformed the general market. Overbidding of asking prices became more common, and on average, listings sold faster than last year.

Inflation saw a welcome decline from 3.1% to 2.7%, easing financial pressures for many. Stock markets experienced very substantial appreciation in 2024, significantly boosting household wealth, particularly for affluent buyers. Consumer confidence also rose in the second half of the year, ending 6% higher than the year prior and showing strong signs of continued improvement.

Real estate activity typically accelerates into spring, and if the weather cooperates, the Bay Area’s “spring” market often begins early with robust opportunities for buyers and sellers alike. Starting a new year brings optimism and motivation for many, often translating into exciting new real estate opportunities.

Macroeconomic Factors Report

San Francisco Neighborhood Price Map

If you want to do a deeper dive into what these market insights mean for you, or you are just curious about the market, we’d love to chat!

Housing Market Predictions for 2025

The 2025 housing market is shaping up to offer more opportunities for buyers, renters, and sellers. A gradual increase in inventory is expected, providing buyers with more options and less competition after years of tight supply. Home values are forecasted to grow at a steady 2.6%, while existing home sales may rise slightly to 4.3 million.

Mortgage rates will remain unpredictable, with temporary dips creating key opportunities for buyers and refinancers. The Southwest and Southeast will see expanded buyer-friendly markets, offering increased affordability and negotiating power. Meanwhile, smaller, efficient homes are trending, reflecting a shift toward functional, thoughtfully designed living spaces.

Renters can expect greater availability from recent multifamily construction, although perks like free rent or parking may diminish by late 2025. Pet-friendly amenities continue to rise, meeting the growing demand from pet-owning renters.

Navigating the real estate market can be challenging, but with the right guidance and strategy, you can make 2025 the year you achieve your real estate goals. Ready to take the next step? Let’s connect and explore your options today!

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San Francisco: February’s Top Festivals and Events Await

Celebrate February in San Francisco with a vibrant lineup of events and festivals. Usher in the Year of the Dragon at the Chinese New Year Parade or admire stunning tulips during Tulipmania at PIER 39. Don’t miss San Francisco Beer Week’s tastings. Wrap up the month with music, art, and culture at Noise Pop, the city’s premier festival.

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If You’re in Bernal Heights, Don’t Miss Bernal Basket!

If you’re ever in Bernal Heights, you must check out Bernal Basket. It’s this super cozy spot that’s been making fantastic bread and pastries, and trust us, it’s worth the visit. The vibe is laid-back, the bread is next-level, and their pizza nights are a must. Seriously, you’ll thank us later. From perfectly crusty sourdough loaves to gooey brown butter cookies, everything here is made with care and attention to detail.

The menu also features hot breakfast sandwiches, baguette sandwiches to go, and a full espresso bar — perfect for starting your day. Don’t forget their pizza nights from Thursday to Sunday, where you can enjoy fresh, wood-fired creations that are simply irresistible!

DA Team Tip: Try their signature country loaf — subtly sour, moist inside, and with the perfect crust. Or grab their focaccia or pizza, pour some wine, and you are set for the perfect night in!

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“I’ve had the pleasure of both buying and selling a home with Dale + Alla. They are extremely professional, helpful and on top of it. Dale was able to guide me through the complexities of buying/selling a house with clear explanations and unbelievable responsiveness. If you’re looking for a top tier real estate team in San Francisco I highly recommend Dale + Alla.”

— M.G.

You can see more testimonials on our website.