August 2025: San Francisco Real Estate Insider

As we enter the second week of August – what is generally considered a “no fly zone” in terms of bringing new listings to market (until after Labor Day), the market is surprisingly good in terms of buyer motivation and activity. As a reference, I had three listings – priced from <$1m to $5m that were ready for market and the sellers were open to waiting until after Labor Day to list. But with the agent community commenting on good first open house traffic (for new listings) and generally positive feelings around San Francisco’s improved QOL, I decided to bring all three listings to market in mid to late July. The results were multiple offers on two of the listings and one that took four weeks to find the right buyer. Again; if the buyers are “there;” why wait for more (seller) competition in the fall?

Speaking of the coming fall market, I think we will see a large surge of inventory. All of the stagers, photographers, draftsmen, drone pilots, etc. that I generally work with are slammed and booked out several weeks. I think we’ll have a great buying opportunity for those that are ready to put the effort into a home search.

Looking at San Francisco in general, it really “feels” like we are on another upward trajectory in terms of desirability and housing. A good indicator of the surge is always the rental market. First, the rental market has heated up and landlords are often taking multiple applications and rent rates are being bid up. Also, there is a huge jump in the demand for high-end rentals. We are talking about demand for houses in the $30,000 to $60,000 per month range. Who are these renters? Most appear to be coming to our city for high-paying AI jobs. Many are not yet willing to plunk down $8m when they can “try” the equivalent for $40k per month.

One more trend that may play a larger impact on the high end market this fall in San Francisco is the slowly emerging (or returning) foreign buyer. Currently, the Peninsula has experienced a notable return of Chinese buyers; predominantly in the premium locations like Palo Alto, Atherton, Menlo Park, Hillsborough, etc. If the impact continues, expect it to play out on the north side of town.

Here are some data points for the month.

Although no longer the county with the highest price, San Francisco has experienced the highest year-over-year appreciation rate in the Bay Area.

Looking at the luxury market, San Francisco has a very good year-over-year uptick and I expect this to continue in the second half of the year.

Another metric that indicates more buyer activity in the market is the reduced number of listings that reduce their price. It also is a good indication that sellers are more in tune with neighborhood values versus aspirational pricing.    

That is it for now. Have a great weekend. If you are thinking of a move, let’s put a plan in place to make the most of your asset. Likewise, if you have friends or colleagues looking to get into the market, feel free to pass my name along. 

Call or email, anytime.