San Francisco’s housing market continued its powerful start to 2026 with another month of strong price growth, fast sales, and tight inventory. Demand remains fueled by the surge of wealth tied to the artificial-intelligence boom across the tech sector, while mortgage rates hovering around the low-6% range have helped keep buyer activity elevated. At the same time, strong stock-market performance and expanding venture capital investment in AI companies have boosted buyer confidence and purchasing power, helping push prices higher even as available inventory shrinks.
The single-family home segment posted the most dramatic gains. The median sale price jumped 22.7% to $1,963,000, one of the largest year-over-year increases in recent years, while the median price per square foot climbed 14.9% to $1,136. Homes sold in just 12 days on average, continuing the trend of extremely fast sales. Inventory remained tight, with 22.7% fewer homes for sale at the end of the month compared with last year. Despite limited supply, the number of homes sold still increased 6.7%, underscoring how strong demand remains. Competition continues to be intense, with sellers receiving an average of 116.8% of the list price.
Condominiums also showed meaningful growth. The median condo sale price rose 11.1% to $1,225,000, while price per square foot increased 13.3% to $1,085. The pace of sales accelerated significantly, with the median days on market dropping 27.8% to just 13 days. Condo inventory tightened sharply as well, ending the month 28.6% lower than a year ago. Demand strengthened across the segment: contracts increased 8.9%, sales rose 3.4%, and more than half of condos (52.8%) sold above asking, a dramatic 34.7-point increase compared with last year. Sellers captured an average of 104.7% of the list price, confirming that the condo market is regaining momentum.
Several broader economic trends are helping drive this renewed strength in San Francisco real estate. The AI sector continues to expand rapidly, attracting workers, founders, and venture capital back to the city. Major technology firms and startups are competing aggressively for talent, offering high salaries and signing bonuses that are translating into housing demand. Meanwhile, mortgage rates are the lowest they have been at their lowest level since 2022, helping improve affordability and encouraging buyers to reenter the market.
San Francisco heads into the spring season with clear momentum. With inventory still limited and economic confidence strengthening, sellers who prepare and price their homes well should expect strong interest and competitive offers. Buyers, meanwhile, should be ready to move quickly when the right property appears, particularly for well-located homes and move-in-ready properties in desirable neighborhoods. If current trends continue, 2026 could shape up to be one of the strongest years for San Francisco real estate since the pandemic recovery began.
