🏡 San Francisco Housing Market Forecasts for the Second Half of the Year
What Bay Area Buyers and Sellers Need To Know Now
From rising home prices to ever-changing mortgage rates, the 2025 housing market has been a rollercoaster — especially here in San Francisco, where real estate has always moved to its own rhythm.
If you're wondering whether now is the right time to make a move, you're not alone. Homebuyers, sellers, and investors across the Bay Area are all asking the same question: What’s next?
The great news? Leading housing experts are now sharing their projections for the second half of the year. And for those watching San Francisco closely, there are some clear signs of opportunity on the horizon.
According to Business Insider:
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Let’s break down what this means — not just for the national market, but for you here in San Francisco.
🔻 1. Mortgage Rates Are Expected To Dip — Even Slightly, That’s Big
While we’re not expecting dramatic changes, forecasts are pointing to a modest decline in mortgage rates. That matters even more in a high-cost market like San Francisco, where even a 0.25% drop can equal hundreds of dollars in monthly savings.
📉 What this means in SF: A small decrease in mortgage rates could make previously out-of-reach homes more attainable — especially for first-time buyers navigating the city’s premium prices. But keep in mind: timing the market perfectly is nearly impossible. Your best move is to stay informed and be ready.
🏘️ 2. Inventory Is Slowly Increasing — Even in Tight Markets Like San Francisco
Inventory remains tight across much of California, but San Francisco is seeing a gradual increase in listings, thanks to more homeowners deciding to get off the sidelines.
As interest rates stabilize, long-time homeowners in San Francisco who’ve delayed listing are finally making moves. This is leading to a more diverse range of homes hitting the market — from updated Victorians to modern high-rise condos.
Lance Lambert of ResiClub says:
“The fact that inventory is rising year-over-year strongly suggests that national active housing inventory for sale is likely to end the year higher.”
📍 Why it matters in SF: In a city where low inventory has long been the norm, even a slight uptick creates big opportunities — more selection, less competition, and potentially better deals.
💰 3. Prices Are Still Rising — But the Pace Is Cooling
Home prices in San Francisco remain high, but growth is starting to slow to a more sustainable pace. Experts predict national home prices to rise about 2% this year, and while San Francisco may still trend above that average, the days of double-digit price hikes appear to be behind us — at least for now.
🛑 San Francisco insight: While neighborhoods like Noe Valley or Pacific Heights may still see strong demand and price growth, others — like SoMa or the Outer Richmond — could experience price softening due to rising inventory and shifting buyer preferences.
📈 That makes now a smart time for buyers who were previously priced out to re-enter the market before competition ramps up again.
💡 Final Thoughts: What This Means for San Francisco Buyers & Sellers
The second half of 2025 brings a more favorable playing field for both buyers and sellers in San Francisco — but only if you understand where the opportunities lie.
Here's what the experts and local trends suggest:
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Mortgage rates may dip, giving buyers more financial breathing room.
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Inventory is slowly increasing, meaning more choice and less stress.
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Price growth is moderating, making the market more approachable.
🎯 If you're a buyer: This could be your chance to lock in a home at today’s price with tomorrow’s mortgage rate improvements. Acting before rates drop further could even give you room to refinance later.
💼 If you're a seller: Rising inventory means now may be the sweet spot — before more listings create added competition. Positioning your home strategically can still attract serious, qualified buyers.
Bottom Line for San Francisco:
Whether you’re buying or selling, the market is shifting in ways that could work in your favor. But timing and local expertise are everything.
📍 San Francisco is a micro-market. What’s true in one neighborhood may not apply in another — which is why working with a trusted local agent is essential. They’ll help you read the signals, interpret the data, and make smart, confident moves.
MAKE YOUR SAN FRANCISCO REAL ESTATE DREAMS A REALITY
When it comes to buying or selling in areas like San Francisco (Marina, Pacific Heights, Cow Hollow), Charles Jacob is your trusted partner. With expert market knowledge and a commitment to exceptional service, he can help you find answers to all your questions. Get in touch with Charles Jacob today to step into the exciting San Francisco market.
