More Homes on the Market in San Francisco: What It Means for Buyers and Investors
San Francisco’s real estate market has been a tough one for buyers in recent years, with high prices and rising mortgage rates limiting options. But there's good news: inventory is increasing. Whether you're looking for a luxury condo, an investment property, or a home with renovation potential, more choices mean better opportunities.
Here’s what’s changing and how it affects you.
1. More Existing Homes Are Hitting the Market
In 2024, the number of existing homes for sale jumped by 22%, according to Realtor.com. Inventory is expected to grow another 11-15% by the end of the year.
For San Francisco buyers, this means:
More luxury and high-end properties available – If you’ve been searching for a home in neighborhoods like Pacific Heights, Noe Valley, or the Marina, you’ll have more options to choose from.
Investment opportunities expanding – More listings mean a better chance of finding properties that can generate strong rental income or appreciate over time.
Negotiation leverage improving – More inventory means less competition for each home, potentially leading to better pricing and seller concessions.
““It could be a particularly good time to get out into the market . . . you’re going to have more choice.””
2. New Construction Is on the Rise
Right now, roughly 1 in 3 homes on the market nationwide are newly built. In San Francisco, while new construction is limited by zoning and land availability, certain developments in Mission Bay, South of Market (SoMa), and the Dogpatch are adding much-needed housing supply.
Why this matters:
Newer homes with modern amenities – Many new developments offer luxury finishes, energy efficiency, and smart home technology.
Potentially competitive pricing – Builders are pricing more affordably to attract buyers. Some new builds may be similarly priced—or even lower—than existing homes in some areas.
Better financing options – Many developers offer incentives such as lower mortgage rates, closing cost assistance, or upgrades.
“If you live in an area where there’s a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”
What This Means for You
With more homes on the market, 2025 could be a great time to buy. Whether you're a first-time homebuyer, a move-up buyer, or an investor looking for opportunities, having more choices means more power in negotiations.
If you’re considering buying in San Francisco, let’s talk. I’ll help you navigate the current market, find the right property, and explore investment-worthy opportunities.
What’s on your must-have list? Let me know, and I’ll send you a list of homes that fit your needs.
📩 Contact me today to start your search.
