Welcoming 2025: Reflecting on the Past, Looking Ahead
Happy New Year Glen Park! I hope you all had the chance to unwind and enjoy some well-deserved time with loved ones this holiday season. Personally, it was a refreshing break—after a whirlwind of work from summer through the end of the year, everything wrapped up just in time for a nice recharge. I spent some quality time with family and had the pleasure of showing friends from chilly Minnesota around the stunning Marin Watershed trails. There’s something magical about those hikes—peaceful, grounding, and the perfect way to usher in a new year.
As we settle into 2025 it’s time to start thinking about what the new year will bring and to reflect on what happened in 2024:
A Year of Recovery and Resilience
Looking back, 2024 felt like a welcome improvement over 2023 for the housing market. The previous year had been a rollercoaster of high interest rates and uncertainty, with the 30-year fixed mortgage rate climbing to an eye-watering 8% by the end of 2023. Fast forward to today, and we’re starting 2025 with rates hovering around 6.5% to 7%. While this still varies depending on the borrower’s personal situation, it’s a significant shift in the right direction.
Despite this positive momentum, December 2024 saw the lowest number of active listings in San Francisco since 2016. Nationwide, it was a historically slow year for real estate transactions—2024 had the lowest annual volume in the last 30 years–quite similar to 2023. San Francisco did see a slight uptick in sales compared to 2023, but it was still a more subdued year overall. Interestingly, there are roughly one million more agents in the market now for those sales than there were at the last low 30 years ago!
In case you’re curious about the numbers, I’ve put together some stats comparing the real estate market in San Francisco and Glen Park for 2024 versus 2023. As you’ll see, the difference isn’t terribly significant, but for San Francisco and Glen Park, the numbers are moving in the right direction.
Looking Ahead: 2025 and Beyond
So, what does 2025 have in store? Midway through 2024, many experts predicted that mortgage rates would fall to around 5% by the end of 2025. However, with the latest economic data coming in better than expected, the consensus has shifted. Most forecasts now predict that mortgage rates will likely remain in the 6% to 7% range for much of this year, and I’m inclined to agree. Of course, there’s no crystal ball, and the market could shift in unexpected ways. But if I had to make a prediction, that’s where I see rates hanging out for 2025. Rates aren’t the only indicator, but a change in rates can definitely create a ripple effect in the market. Many homeowners still want to move—whether to upsize, downsize, or relocate—but feel ‘locked in’ by their current low interest rates. This puts a crunch on inventory.
I see the market in San Francisco in general, and Glen Park more specifically, continuing to be a seller’s market through 2025 – especially for single family homes. Space in San Francisco is finite, and as more businesses encourage employees to return to the office, we’re seeing renewed interest in The City. Additionally, the rise of AI-related businesses in the Bay Area is attracting highly skilled talent, further fueling the demand for housing. Glen Park is perfectly situated for commuting, and as anyone reading this knows, it’s an amazing community in which to live.
For those keeping an eye on new real estate laws and regulations for 2025, be sure to check HERE for the latest updates. It’s always a good idea to stay informed about the legal landscape, especially with the ever-evolving nature of the real estate market.
I’m looking forward to reporting back when we’re moving into February and will have a better idea of how the outlook for 2025 is starting to play out.
Now, for the Glen Park Transactions/Listings for the month of December:
Here’s a look at what sold in the month of December–
Here’s a look at what’s currently in contract–
And lastly, the inventory that is currently available in Glen Park–
For more San Francisco sales data, visit: thegoods-sf.com/AmandaMartin/
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