As published in early 2026, Golden Gate Sotheby’s International Realty has released its comprehensive 2025 Annual Market Report, offering a deep dive into one of the nation’s most dynamic real estate landscapes — the San Francisco Bay Area.
Despite ongoing affordability pressures and elevated mortgage rates, the Bay Area housing market showed strong resilience in 2025. According to the report, over 40,000 homes traded hands — the highest annual sales volume since 2022. Aided by a 27% increase in active listings, buyers benefited from more choices, while sellers still saw robust pricing in desirable neighborhoods.
Golden Gate Sotheby’s International Realty itself logged more than $4.7 billion in total sales volume for the year, cementing its position as the top Sotheby’s International Realty affiliate in California by sales.
One of the defining themes of 2025 was the shift toward a more balanced market. After years of tight inventory, the Bay Area saw listings rise to their highest levels since 2019 — helping buyers find more opportunities even as demand remained strong in key regions like San Francisco, Marin, and San Mateo counties.
Homes in many parts of the inner Bay Area continued to sell quickly and often above list price, especially in highly desirable markets. The average days on market remained competitive, and bidding activity — while softened compared with pandemic-era frenzies — still reflected strong buyer interest in quality properties.
The report highlights nuanced pricing dynamics across the region:
◼️ Median home prices continued to show strength in many core counties.
◼️ Single family home pricing in San Francisco increased year-over-year, reflecting robust demand for urban living.
◼️ Some outer counties like Solano and Contra Costa experienced more modest price shifts, indicating varied local market conditions.
Across the region, the overall Bay Area median sales price remained strong, underscoring the long-term appeal of owning property in one of the country’s most economically influential regions.
The 2025 report also underscores the continued vitality of the luxury segment. High-end sales — including multiple transactions north of $20 million — highlight Bay Area real estate’s enduring allure for affluent buyers. Luxury sales were particularly concentrated in markets like Atherton, Woodside, and San Francisco’s most iconic neighborhoods.
Golden Gate Sotheby’s International Realty leverages its global marketing reach — including syndication on premier platforms such as Mansion Global and The Wall Street Journal — to connect local sellers with international buyers, a strategic advantage that remains especially relevant in the luxury tier.
A few notable economic forces shaped market behavior in 2025:
◼️ Mortgage rates, while higher than historic averages, softened slightly in the second half of the year, encouraging renewed buyer activity.
◼️ Employment trends in professional services and technology influenced relocation and housing demand, even as some sectors experienced job contractions.
◼️ The Bay Area’s unemployment rate stabilized by year’s end, supporting overall buyer confidence.
The 2025 market showed that well-positioned homes in strong locations continue to command premium interest. With greater inventory and balanced demand, sellers could attract more competitive offers — particularly in luxury and high-demand segments.
The increase in listings provided more negotiation room, while pockets of rapid sales activity showed that desirable properties still move quickly. Buyers with clear financing and decisive strategies found opportunities in both core and suburban markets.
The 2025 Annual Market Report from Golden Gate Sotheby’s International Realty reflects a maturing Bay Area housing market — one that celebrated record sales volumes, increased inventory depth, and enduring luxury demand. As we look ahead, the data suggests a real estate landscape that’s becoming more balanced and accessible, yet still robust in value and opportunity.
Author: Jennifer Glassman and Marcia Skall, MBA. Award-winning real estate agents with combined 40+ years of experience serving Marin County and beyond.
Reach out to learn more about the market in your neighborhood!
Jennifer Glassman 415.309.5331
Marcia Skall, MBA 415.533.5721
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