According to the San Francisco Chhronicle, overall Bay Area home sales slipped by just over 2% between January and July 2025 compared with the same period last year. However, San Francisco is moving in the opposite direction. The city recorded a 5% jump in sales — from roughly 2,870 homes in 2024 to about 3,010 in 2025.
AI Boom Boosts San Francisco Housing
Local agents point to the artificial intelligence boom and renewed confidence in San Francisco’s future as key drivers behind this growth. The surge of AI companies setting up offices has already pushed rental prices higher, and experts believe home values may soon follow. Currently, the city’s median home price sits at $1.27 million, down slightly — about 1% — from last year.
Buyers Seize Opportunity Before Prices Climb
The city’s real estate market has shown resilience compared to other regions that cooled after mortgage rate hikes and tech layoffs. Many buyers are viewing today’s softer prices as a chance to purchase before values rebound. Single-family homes have led the recovery, while condo sales remain flat, with some owners pulling listings rather than selling at a loss.
Broader Bay Area Outlook
Outside San Francisco, only a handful of cities — including Vacaville and Oakland — are seeing modest gains in sales, though both remain well below pre-pandemic levels. In markets like Oakland, increased inventory has motivated sellers to offer concessions such as closing cost coverage or mortgage assistance to attract buyers.
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Source: sfchronicle.com
