What’s Happening in the SF & Marin Housing Market?
The San Francisco and Marin real estate markets continue to evolve, presenting both opportunities and challenges for buyers and sellers in February 2025. With fluctuating mortgage rates, shifting inventory levels, and ongoing legislative changes, staying informed is more important than ever. Whether you’re considering selling your home or searching for the right time to buy, understanding local home values and neighborhood trends is key to making sound real estate decisions.
There’s been some negative press about the broader housing market, and while market conditions are always nuanced, demand remains strong for well-positioned properties. Recently, I helped clients write an offer on a Mill Valley home high above town, near Mount Tamalpais—a property that needed some work and had a septic system. Despite these factors, it received five competing offers and sold well above the asking price. Similarly, a condo in Hayes Valley I represented attracted four offers and closed significantly over the list price.
The reality? Desirable homes—those that feel special the moment you walk in—are still commanding strong interest. Buyers are active, motivated, and ready to secure their next home.
Current Market Overview
As of February 2025, the median home prices in San Francisco and Marin continue to reflect the region’s competitive nature. Home values have shown moderate appreciation, with certain neighborhoods experiencing higher-than-average growth.
- Home Prices: The average San Francisco home price sits at approximately $1.4 million, a 2.5% increase from the same period last year, while Marin County home prices have reached an average of $1.6 million, driven by strong demand in areas like Mill Valley and San Rafael.
- Inventory Levels: The number of active listings has slightly increased, creating more opportunities for buyers while keeping sellers mindful of pricing strategies.
- Days on Market (DOM): Homes in San Francisco are spending an average of 32 days on the market, compared to 28 days last year. In Marin, well-priced homes are moving slightly faster, averaging 27 days on the market.
- Mortgage Rates: Interest rates remain a hot topic, hovering around 6.2% for a 30-year fixed loan, influencing buyer affordability.
Neighborhood Spotlight: Where Are the Hottest Markets?
Certain San Francisco and Marin neighborhoods are showing strong market activity, making them attractive for both investors and primary homebuyers.
- Outer Sunset & Parkside (SF): These western neighborhoods have seen an increase in demand due to their relative affordability compared to central districts. With median sold home prices in the $1.6 million range, these areas are attracting a lot of buyers.
- Noe Valley & Bernal Heights (SF): Historically strong for single-family homes, these neighborhoods continue to attract buyers looking for charm, walkability, and proximity to tech hubs. Expect home values to remain stable or increase slightly. There have been quite a few sales here lately and homes have sold quickly!
- Mission Bay & South Beach (SF): With a mix of luxury condos and high-rise developments, these areas are popular among young professionals and investors looking for rental income. There are still deals to be had here but interest is picking up.
- Mill Valley & Larkspur (Marin): These scenic areas are in high demand due to their excellent schools, outdoor lifestyle, and easy ferry or bridge access to San Francisco. Prices remain high, but demand has kept up with supply.
- San Anselmo & San Rafael (Marin): Offering more affordable single-family homes than southern Marin, these areas attract buyers looking for space, good schools, and a suburban feel while staying close to the city. This where you move if you really want warm and pleasant summers. Sun Valley in San Rafael is a little slice of heaven!
Curious about how these trends impact your home’s value? Get a free, personalized market analysis today!
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Legislative & Economic Factors Impacting SF & Marin Real Estate
The San Francisco and Marin real estate markets are always influenced by external factors, including new laws and economic conditions.
- Senate Bill 9 (SB9): This law continues to impact zoning, allowing homeowners to build ADUs (Accessory Dwelling Units) and subdivide lots, increasing housing supply in key areas.
- Tech Industry & Employment Trends: With some major tech companies rehiring after previous layoffs, certain areas like SoMa and Mission Bay are seeing renewed interest from high-income buyers, while Marin continues to attract remote workers looking for more space.
- Property Tax Adjustments: Proposition 19’s (Click here to find out more about Prop 19) ongoing effects have encouraged older homeowners to relocate, freeing up inventory in both San Francisco and Marin County.
Buyer & Seller Strategies for February 2025
For those looking to buy a home in San Francisco or Marin, the next few weeks may present a good opportunity to enter the market as more inventory comes online. Sellers, on the other hand, should focus on strategic pricing and preparation. Everything in the marketing strategy should align to make your home a must-see property!
For Buyers:
- Act before competition increases: Spring tends to bring more buyers into the market, so locking in a deal now may offer negotiating leverage.
- Explore high-growth neighborhoods: Areas like Outer Sunset, Bayview, and West Portal in SF, and Novato, San Rafael, and Corte Madera in Marin, could provide value for long-term appreciation.
- Consider seller incentives: Some sellers are offering closing cost credits or rate buydowns to attract buyers. This is certainly on a case by case basis but I can show you when this can come into play, and actually it can make a big difference in terms of your monthly payment.
For Sellers:
- Price competitively: With slightly higher inventory, homes that are priced right will attract serious offers faster.
- Stage for success: Homes that are well-staged and move-in ready continue to command premium pricing. Clients will often ask “Is it worth it to stage my home?” Sellers and their agents have the ability to control the buyer’s experience when they enter the home for the first time, that is a power I would not give up lightly. Also, if the expectation is for a buyer to spend an above average sum, it is imperative to give them an above average experience.
· Highlight ADU (Accessory Dwelling Unit) Potential: Buyers are increasingly drawn to properties with rental income potential, making ADUs a valuable selling feature. However, demand for ADUs varies—while they can provide mortgage relief, higher-end buyers are often less inclined to share their property, even for financial benefits. That said, a well-designed ADU offers flexibility, serving as a guest house, home office, or multi-generational living space, making it a compelling addition to any property.
Interested in Some Detailed Information? Check These out!
Home Seller's Guide Buyer's Guide
Conclusion & Next Steps
The San Francisco and Marin real estate markets remain dynamic, with key trends shaping buyer and seller decisions. If you’re considering buying or selling, staying informed about market conditions is essential.
Curious about how much your home is worth in today’s market?
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Stay tuned for more San Francisco and Marin real estate market updates, and reach out for personalized guidance on your real estate goals.
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Oliver Burgelman
415.244.5846 | [email protected]
