SAN FRANCISCO
The San Francisco Bay Area luxury real estate market is poised for a strong 2025, driven by renewed buyer interest, steadily building supply and growing market optimism, notes Jessica Grimes, growth and brand strategist at Christie’s International Real Estate San Francisco | Marin | Wine Country. A key catalyst for this turnaround is the city of San Francisco. Home prices there have fallen by double digits from their 2022 peak, creating value opportunities that buyers are now eager to seize. Optimism is bolstered by a newly elected mayor focused on public safety, business development and the construction of new housing. Meanwhile, across the broader Bay Area, a constrained market over the past two years has been shaped by buyer hesitation and limited quality inventory. However, market improvement toward the end of 2024 signaled a positive trend for the year ahead. Chris Trapani, co-founder and CEO of Christie’s International Real Estate Sereno says, “October and November saw a 20% increase in the number of homes sold compared to the prior year, and sellers who have delayed listing their homes are beginning to enter the market, adding momentum to inventory growth.” The region is also benefiting from increased tech sector valuations, according to several local Christie’s International Real Estate agents. The Magnificent Seven group of tech mega-caps averaged eye- popping returns of nearly 69% in 2024, compared with a merely spectacular 25% for the S&P 500. With a repeat performance of those numbers unlikely in 2025, the market is apt to see a number of wealthy homebuyers within the tech ecosystem converting their stock gains into property investments, thereby driving activity across Silicon Valley and the greater Bay Area. “We have growing confidence that 2025 will bring renewed energy and momentum to the Bay Area and mark the beginning of a multi-year up cycle for the local real estate market,” says Trapani.
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