The San Rafael, CA metro area housing market is experiencing significant shifts as of February 2025, characterized by rising prices and increased sales activity. The Median Sales Price has surged to $1,450,000, marking a substantial year-over-year increase of 17.0%. This upward trend in sales prices is mirrored by the Median List Price, which stands at $1,500,000, up 15.8% from the previous year.

Despite the overall increase in prices, the median Price Per Square Foot has decreased by 3.6% year-over-year, now at $746.89. In contrast, the Median List Price per square foot has seen a modest increase of 1.4%, reaching $829.83. This divergence suggests a potential shift in buyer preferences or market dynamics, where larger or more premium properties might be driving the overall price increases.

Sales activity in the San Rafael area is robust, with 127 Homes Sold, reflecting an 18.7% increase from the previous year. Pending Sales have also risen sharply by 30.0%, totaling 169. This heightened activity is supported by a significant influx of New Listings, which have increased by 30.1% to 238. Inventory levels have grown by 17.0%, reaching 372 homes, indicating a more competitive market environment.

The Months of Supply, a critical indicator of market balance, has decreased by 10.0% to 2.9 months. This decline suggests a tightening market, with homes selling more quickly. The Median Days on Market have decreased by 12.0%, now averaging 23 days, further emphasizing the swift pace of transactions.

The average sale to list ratio has slightly decreased by 1.0% to 101.2%, indicating that homes are still selling above their list prices, albeit with a slight reduction in the premium buyers are willing to pay. The sold above list ratio has also seen a minor decline of 0.6%, now at 43.3%. This suggests that while competitive, the market may be experiencing a slight cooling in terms of aggressive bidding.

Price Drops have increased by 11.9%, now at 22.3%, which could indicate that sellers are adjusting expectations in response to market conditions. Additionally, the percentage of homes going off the market in two weeks has risen by 14.6%, now at 43.8%, highlighting the quick turnover and strong demand in the area.

Overall, the San Rafael housing market is characterized by rising prices and strong sales activity, with a notable increase in New Listings and inventory. However, the decrease in the median Price Per Square Foot and the slight cooling in sale to list ratios suggest a complex market environment that requires careful navigation by both buyers and sellers.