San Francisco’s housing market started 2026 with a surge in activity. January is normally a slower month, but this year kicked off with a flurry of bidding wars, supported by a wave of AI-driven liquidity across the tech sector and renewed confidence as mortgage rates fell. Buyers armed with AI-driven wealth pushed prices sharply higher and snapped up the limited listings that were available.
The single-family segment delivered the biggest leaps. Median sales price climbed 16% to about $1.65 million, even as price per square foot rose a solid 6.4%. Homes sold in just 12 days on average—two weeks faster than a year earlier—and nearly three-quarters of properties sold above their list price. Sellers captured an average of 115.8% of the list price, up nine points from 2024, underscoring how fierce competition became. The only real slowdown was volume: contracts and closed sales fell about a third because there simply weren’t enough homes to meet demand, even with inventory up nearly 20% on the last day of the month.
Condominiums saw more modest price gains but still moved faster than last year. The median sale price ticked up 1.2% to around $1.0 million, and listings sold roughly 13 days faster on average. Price per square foot dipped 5%, reflecting buyers’ preference for larger or better-located units, yet nearly 28% of condos sold above asking, a 5.7% jump in that metric. Contracts declined nearly 30% and closed sales slipped about 8.5%, signaling that the condo market remains more balanced; still, sellers received 99.7% of list price on average and ended the month with 24% fewer listings on the market.
San Francisco heads into 2026 with an unmistakable sense of optimism. AI-fueled wealth, robust stock-market gains, and the drop in mortgage rates have re-energized buyers. Sellers who prepare their homes strategically should expect strong interest, and buyers should be prepared for competitive bidding—particularly for move-in-ready properties in coveted neighborhoods.
