San Francisco Real Estate
October 2025 Report
San Francisco has seen an astonishing strengthening of its real estate market in recent
months, presumably due to its rapidly accelerating AI start-up boom. Rents are rising at
the fastest rate in the country and median sales prices have risen year over year.
September sales and luxury home sales, as well the number of listings going into contract,
all soared higher than in September 2024. New-listing activity almost doubled from
August, but year-over-year, the number of active listings as well as the quantity of price
reductions plunged. Increasing demand coupled with declining supply has added
enormous pressure to the city’s market.
October sales data will give us further insight into the autumn selling season, before
activity typically begins to slow down in November for the mid-winter holidays.
As of early October, 30-year mortgage rates, at about 6.3%, were essentially unchanged
from early September (but well down from 7% in early 2025): The Fed’s first 2025
reduction of its benchmark rate, of .25%, had little effect, though consensus opinion is
that further cuts are probably coming before the end of the year. Inflation continued to
tick up slightly, while stock markets hit new all-time highs. Nationally, consumer
confidence remained low, with significant concerns regarding personal finances,
employment and inflation – though affluent consumers deeply invested in stock markets
were less concerned than low and middle income segments.
This analysis and data were compiled by our friend Patrick Carlisle at Compass.
