San Francisco Bay Area Residential Real Estate Trends: August 2025 Market Report

Summer pause sets the stage for fall

July in the Bay Area often brings a lull as residents squeeze in vacations and prepare for the new school year, and this year was no different. Inventory ticked up across most counties, giving buyers more choice than they had in spring, while sellers enjoyed continued, if slightly softer, demand. Despite mortgage rates hovering around the mid‑6s, many shoppers seem undeterred. In fact, the number of homes sold across California reached about 25,000 in July, only 3 % lower than a year ago, and the state’s median sale price of $828 900 was off just 0.7 % year over year. Nationally, the story was similar: U.S. home prices rose 1.4% from a year earlier to $ 443,462, even as sales volumes fell slightly. In other words, the housing market has cooled from 2021’s frenzy but remains resilient.

County‑by‑county highlights

In San Francisco, single-family homes sold for a median of $1.41M (down 7% from June) with a $961 per-square-foot price. Homes spent about 28 days on the market, and sellers still received 105.5% of the asking price on average. Condo buyers found better value: the median condo price was $1.15 M with a 52‑day marketing time and a sale‑to‑list ratio near 100 %. Alameda County’s single‑family homes averaged $1.03 M at $627 per square foot with a 26‑day marketing period and a sale‑to‑list ratio of 104.3 %. Contra Costa posted a median price of around $780, a 27-day market time, and a sale-to-list ratio of 100.6%, reflecting solid but less heated demand. On the Peninsula, San Mateo and Santa Clara remained the most competitive: median prices were $2.60 M and $2.28 M, respectively, with homes selling in roughly 25 days and 23 days, and final prices averaging 102 – 103 % of list, clear evidence of ongoing bidding wars. Outlying counties showed a softer picture. Marin, Napa, Solano, and Sonoma all recorded longer market times (45–70 days) and sale-to-list ratios around or below 100%, giving buyers more room to negotiate.

The condo and TIC market told a slightly different story. While San Francisco condos still fetched over $950 per square foot, most other counties saw prices in the $400–$700 range. Days on market varied widely, from about 32 days in Santa Clara to 98 days in Napa, and sales volumes were generally lower. Notably, condo prices in Marin and Napa slid more than 20 % month over month, whereas San Mateo and Santa Clara saw modest gains. For buyers who value low maintenance or prefer urban living, these softer condo numbers represent an opportunity.

Single Family Homes

Condos

Mortgage rates and market outlook

Interest rates are an ever‑present wildcard. The average 30‑year fixed mortgage sat near 6.74 % at the end of July, essentially flat compared to a month earlier and just below last summer’s level. Rates have remained stubbornly high because the Federal Reserve continues to watch inflation and employment data closely, and investors demand higher yields to offset economic uncertainty. Softer inflation readings and hints of slower growth could push mortgage rates down later this year, but most economists expect them to stay in the mid‑6s until the Fed is confident inflation is contained. Buyers should consult lenders regularly; even a quarter‑point drop can improve affordability. For sellers, understanding buyers’ financing constraints will help when pricing and negotiating.

Bringing it all together

The big picture is clear: the Bay Area market has cooled from its spring fever yet remains fundamentally sound. Statewide prices are holding steady, national prices are up modestly, and mortgage rates have stabilized. In our region, prime neighborhoods in San Mateo, Santa Clara, and parts of San Francisco continue to see multiple offers, while Marin, Napa, Solano, and Sonoma offer breathing room for value‑minded buyers. Condos provide additional options for those priced out of single‑family homes. As August turns to September, we expect activity to pick up. Historically, the market re‑energizes after Labor Day. If you’re thinking of buying, use the current lull to get your finances in order and explore neighborhoods; you may find more choice and negotiating leverage. If you’re considering selling, preparing your home now will position you to capitalize on renewed fall demand. Feel free to reach out—we’re here to help you navigate this evolving market with confidence.