The San Francisco market continued its strong momentum through November, powered by a combination of lower mortgage rates, tight inventory, and renewed tech and AI sector activity that has reenergized buyer demand across the city. With mortgage rates now half a percent lower than this time last year and trending downward for the second straight week, buyers are stepping back in with conviction while sellers are benefiting from one of the most competitive environments of the past several years. Both single-family homes and condominiums posted impressive gains, creating an upbeat finish to the fall season.
The single-family segment delivered some of the strongest year-over-year gains seen all year, driven by extreme scarcity and intense competition. The most striking shift came in active inventory, which fell 34.2 percent to only 131 homes available at the end of November. Months of supply compressed to 0.7, underscoring how quickly listings are being absorbed. Buyer demand remained exceptionally strong. Pending sales rose 15.0 percent to 184. The share of homes selling over list price jumped to 82.4 percent, up 14.1 percent from last year. Sellers received an average of 116.4 percent of the list price, a 6.1 percent increase and a clear sign of competitive bidding. Pricing reflected this momentum. The median sales price climbed 12.6 percent to $1,800,000, and the median price per square foot rose 10.0 percent to $1,075. Homes sold even faster than last year, with the median days on market dropping to 13 days.
The condominium market also posted standout gains, with several metrics showing dramatic improvement. Contract activity surged 37.9 percent to 262, and the percentage of condos selling over list price soared 42.8 percent to 44.7 percent. Inventory tightened meaningfully as well, with the number of condos for sale falling 30.0 percent year over year, helping stabilize pricing and speed up absorption. Months of supply ended in November at 2.1. Pricing strengthened across the board. The median sales price increased 6.7 percent to $1,200,000, and the median price per square foot rose 9.1 percent to $1,031. Closed sales picked up 3.4 percent to 215. Condos also moved more quickly, with the median days on market dropping by 17 days to 32 days. Sellers received 102.7 percent of the list price on average, up 2.8 percent from last year. The condo sector continued to benefit from improving buyer confidence, more favorable borrowing conditions, and renewed urban interest tied to expanding AI employment and office reactivation in key neighborhoods. The strong jump in pending sales suggests that this momentum is likely to carry into early 2026.
