San Francisco Real Estate Market - Key Takeaways
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Demand surged sharply in fall 2025, driven by the accelerating AI and technology resurgence in San Francisco, making SF one of the most competitive markets in the country.
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Home prices moved decisively higher: the median house price reached $1.80M, up roughly 9% year-over-year, the highest level since 2022.
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Condos followed with renewed momentum, with median 2-bedroom condo prices rising 6.5% year-over-year, also reaching post-2022 highs.
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Inventory tightened dramatically, with active listings down 35% year-over-year, intensifying competition for quality homes.
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Overbidding returned in force, with 62% of all homes selling above list price—and 82% of houses closing over asking.
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Luxury sales rebounded strongly, posting the highest October $5M+ activity in four years, followed by a seasonally normal November pullback.
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Mortgage rates eased, with the 30-year fixed rate near a 14-month low (~6.2%), improving affordability at the margin heading into 2026.
December Newsletter
Momentum matters. Perception is reality. And right now, San Francisco is benefiting from both. Leadership has stepped forward with renewed energy, the city’s story is being told with confidence again, and the positivity is palpable. This year, with the media’s attention focused elsewhere, San Francisco quietly went back to doing what it does best: innovating, creating, and living exceptionally well.
As we move into the final weeks of the year, San Francisco’s housing market is entering its typical seasonal slowdown, with fewer new listings and quieter transaction activity. That said, the story of 2025 will be remembered for its powerful fall resurgence.
After a subdued first half influenced by economic volatility and interest-rate uncertainty, the market experienced a stunning surge in buyer demand this autumn, fueled largely by San Francisco’s renewed role as the epicenter of AI innovation. Prices, speed of sale, and buyer competition all accelerated sharply, even as inventory continued to shrink.
Single-family homes led the recovery. Median house prices climbed to approximately $1.8M, posting strong year-over-year gains and reigniting multiple-offer scenarios. Homes sold faster, and buyers showed a clear willingness to bid aggressively for well-located, well-presented properties.
Condos also regained traction, particularly outside the downtown core. While downtown condo pricing continues to lag due to higher supply, non-downtown neighborhoods showed meaningful appreciation and improving buyer confidence.
At the high end of the market, luxury buyers re-engaged. October marked the strongest month for $5M+ sales in four years, and November followed as the strongest November since 2021—an encouraging signal for 2026.
Looking ahead, December traditionally offers strategic opportunities for buyers, especially on homes that have lingered on the market. Meanwhile, sellers planning for early 2026 are positioning themselves for what historically becomes a more active market starting in mid-January.
These behaviors reflect heightened competition and demand in the luxury market, influenced by economic conditions and stock market performance.
--> Read more in below December Real Estate Report:
With renewed confidence, meaningful investment, and buyers re-engaging across all segments, the city is once again moving forward with purpose. I’m grateful to be part of this moment—and thankful for your continued trust and support as we head into an exciting 2026.
If you’re considering a move in 2026—or simply want a clearer read on how these market trends apply to your home-
I’m always happy to share tailored insight.
