Navigating The San Francisco Luxury Real Estate Market

Published:
March 18, 2025
Last updated:
March 18, 2025
Post cover image
In This Article

San Francisco’s luxury real estate market gives home buyers access to unique properties in a world-class location, but at a steep price.

This guide offers some timely insights that will help you navigate the San Francisco luxury real estate market. It also covers some of the common mortgage strategies used in this market, including the jumbo loan.

Current Price Range for Luxury Properties

This first part should come as no surprise. Luxury properties in San Francisco are positioned well above the city’s overall median home price.

Although the typical home price in San Francisco hovers around $1.3 million for standard properties, luxury homes generally start at around $3 million and can easily climb into the tens of millions.

For example, recent transactions have seen listings for high-end homes or condos reaching as high as $25 million.

This wide range reflects the diversity within the luxury segment. The San Francisco real estate market offers everything from upscale condos and renovated historic co-ops to expansive single-family estates in coveted neighborhoods.

Types of Luxury Properties in San Francisco

The city of San Francisco offers a diverse portfolio of luxury properties tailored to different tastes and lifestyles. Here’s a summary of what you’ll find in this real estate market.

  • Historic Mansions and Estates: Neighborhoods like Pacific Heights and Nob Hill feature classic, architecturally rich homes with grand layouts, mature landscaping, and sweeping views of the bay.
  • Modern Condos and Penthouses: High-rise developments in areas such as the Financial District, the Marina, and Russian Hill offer sleek, modern designs. They often feature amenities like smart-home technology and concierge services.
  • Renovated Co-ops: Some San Francisco neighborhoods have historic co-ops that have been meticulously restored. These properties blend old-world charm with modern conveniences and design, and are in high demand.
  • Mixed-Use Developments: A growing trend is luxury properties integrated into mixed-use developments, which combine residential, retail, and office space to offer a comprehensive urban lifestyle.

Condos Are a Big Part of the Market

Condos make up a large part of the luxury real estate market in San Francisco, due to its urban density and other factors. They make up about two-thirds of the market, in terms of listings.

Often situated in high-rise buildings, condos offer panoramic views of the city skyline and the San Francisco Bay. In the luxury segment, bay views are a highly prized feature.

Some luxury condominium projects offer amenities you can’t get from a traditional single-family home or standalone condo unit. These include 24/7 concierge services, state-of-the-art fitness centers, pools, and private spas.

Popular luxury condominium buildings in San Francisco include:

  • 181 Fremont: Its innovative hybrid exoskeleton structure allows for exceptionally high-altitude residences with unparalleled panoramic views.
  • The Pacific in Pacific Heights: This unique project repurposed a historic school building into luxurious, expansive residences within a prestigious neighborhood.
  • The Harrison in SoMa: Designed by a renowned architect, The Harrison distinguishes itself with its focus on luxury amenities and vibrant social spaces in the heart of SoMa.
  • Lumina: Lumina’s multi-tower development significantly reshaped the SoMa skyline, offering a wide array of floor plans and extensive amenities, including a ground floor market.
  • The St. Regis Residences: Seamlessly integrating luxury hotel services and residences, The St. Regis Residences offer a unique downtown living experience.

Each of these developments offers distinct features ranging from architectural design to amenities and location.

High-End Areas in San Francisco

San Francisco property values tend to be highest in the following areas:

Pacific Heights

  • Average Home Price: $4.5 million to $5 million

Pacific Heights is known for its grand mansions, historic architecture, and stunning views of the Golden Gate Bridge and San Francisco Bay. It’s a prestigious neighborhood that attracts affluent buyers and offers some of the most expensive real estate in the city.

Nob Hill

  • Average Home Price: $3 million to $4.5 million

Nob Hill is a prime location with luxury condos, historic buildings, and magnificent views of the city. It has a rich history and is known for being one of the most exclusive neighborhoods in San Francisco.

Sea Cliff

  • Average Home Price: $6 million to $10 million

Sea Cliff is one of the wealthiest and most desirable neighborhoods in San Francisco, offering large homes with spectacular views of the Pacific Ocean and the Golden Gate Bridge. The area is home to some of the city’s most expensive estates.

Presidio Heights

  • Average Home Price: $4 million to $7 million

Located next to the Presidio, this area is known for its spacious homes, tree-lined streets, and proximity to parks and recreational areas. It’s a quiet and affluent neighborhood with a strong sense of privacy.

The Marina District

  • Average Home Price: $2.5 million to $3.5 million

The Marina District offers beautiful views of the bay, upscale dining, and boutique shopping. Homes here are often newer and feature modern amenities, with many offering views of the Golden Gate Bridge and the water.

South of Market (SoMa)

  • Average Home Price: $1.5 million to $3 million

SoMa, especially in the areas near Yerba Buena and the waterfront, has seen a surge in luxury real estate developments in recent years. With a mix of modern condos, penthouses, and lofts, this neighborhood has become a hotspot for tech professionals and wealthy buyers.

Luxury Real Estate Mortgage Strategies

Luxury home buyers in San Francisco often have to rely on specialized mortgage financing products, due to the expensive nature of this market. Here are some common options:

1. Jumbo Loans

A key characteristic of the San Francisco luxury market is that property prices far exceed the conforming loan limits set by government housing agencies.

Because of this, buyers often have to rely on jumbo loans in San Francisco to finance their luxury home purchases.

A jumbo loan is a residential mortgage that exceeds the conforming loan limits established annually by the Federal Housing Finance Agency (FHFA).

Securing a jumbo loan typically involves stricter criteria compared to conforming loans. Lenders typically want to see a higher credit score, often starting at 700 or above. A larger down payment is another common prerequisite for these “oversized” mortgage products.

2. Portfolio Loans

Portfolio loans are offered by banks and credit unions, but they differ from the typical mortgages that get sold into the secondary mortgage market.

Instead, the bank or credit union keeps these loans on their books, which means they can be more flexible with their rules. Portfolio loans can be helpful for people with unusual financial situations, or for buying properties that don’t fit the usual mold.

3. Asset-Based Loans

This option allows luxury home buyers to qualify for a mortgage based on their assets—like savings, stocks, or retirement accounts—instead of just their income.

Asset-based loans can be a good option for self-employed people, retirees, or those with a lot of investments but maybe not a steady paycheck.

Borrowers typically need a down payment of 20% to 30% for these loans, and the interest rates can be higher than with traditional mortgages.

For luxury buyers in San Francisco who have a lot of wealth in investments, this can be a useful way to buy a home.

San Francisco Real Estate Market Trends to Know About in 2025

The San Francisco luxury real estate market has heated up over the past year or so, particularly in the segment of properties priced at $5 million and above.

Sales volume in this high-end sector has seen a significant increase, indicating strong demand.

Meanwhile, the inventory of San Francisco luxury homes remains tight, which puts upward pressure on home prices. Buyers planning to make a high-end home purchase in San Francisco should be prepared to act quickly and decisively when a desirable listing becomes available.

Need Financing in San Francisco?

If you’re looking to buy in San Francisco, CA, we can help. At Sammamish Mortgage, we offer various mortgage options for you to choose from. Visit our website to get an instant rate quote or call us today to have your mortgage questions answered!

Other Blogs You May Like
California’s Average Down Payment in 2025: The Latest Insights
March 18, 2025
7 min read
California's Average Down Payment in 2025: The Latest Insights
It's widely known that California has some of the highest home prices of any state in the nation....
California Mortgage Insurance Explained for Borrowers
February 19, 2025
8 min read
California Mortgage Insurance Explained for Borrowers
In California, mortgage insurance is often required when a home buyer makes a small down payment. A...
Show 19 more posts
from this category

Connect with a Mortgage Advisor Today!

Whether you’re buying a home or ready to refinance, our professionals can help.

Compare Mortgage Rates in Your Area Instantly

No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.

Subscribe to our newsletter

Subscribe to Our Weekly Mortgage Newsletter (popup)

"*" indicates required fields