National & San Francisco Market Update
The housing market has eased into a more balanced pace across the country. Home prices are barely outpacing last year, up just under 2%, and actually rising slower than inflation. Inventory is starting to build as more homes hit the market, but with mortgage rates in the mid-high 6% range, many buyers and sellers are still waiting. The Fed kept interest rates steady again in August, with a slight dip this week, keeping an eye on both inflation and the potential impact of new tariffs.
San Francisco is a different story. Most single-family homes move fast, selling in about two weeks if they’re priced and positioned well, but we’re still facing an ongoing shortage of listings. Single-family inventory is down nearly 16% year over year and condo inventory is down about 20%. And while condos tend to sit a little longer (averaging 44 days on the market), that segment is inching toward a more balanced market with 3.1 months of supply. Single-family homes, on the other hand, remain firmly in seller’s territory at just 1.2 months of supply.
We’re seeing these trends across neighborhoods, from the fast-moving single-family market in Noe Valley, Pacific Heights, and Bernal Heights, to the more varied pace in SOMA, Mission Bay, and South Beach’s condo scene. Low inventory is still the defining factor in competitive markets like Inner Sunset, Glen Park, and Russian Hill.
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Buyers: National conditions may be easing, but San Francisco’s low inventory means you need to be ready to move quickly, especially in high-demand neighborhoods like Noe Valley, Cole Valley, and Pacific Heights.
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Sellers: If you own a single-family home, conditions are still very much in your favor. For condo owners in areas like South Beach, Mission Bay, and SoMa, the market is shifting toward balance, so smart pricing and great presentation matter more than ever.
Bottom line: Nationally, the market is cooling into a steady pace, but here in San Francisco, low inventory continues to keep things competitive, especially for single-family homes in the city’s most sought-after neighborhoods. But be warned, if you price your property too high, it doesn’t matter. Buyers are far too sophisticated in San Francisco to ignore market data. They are buying with their heads, not hearts.
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