The City View: February Update
Our market consistently lacks inventory, but what we are seeing currently is exceptional. We have 35% fewer homes on the market this week compared to the same week last year, and 50% fewer homes than the same week 2 years ago. When you combine that with increased demand from AI money, we are seeing one of the most competitive markets in decades. Even the anemic SOMA market has rebounded with highrise condos finally selling. We are in a strong sellers market and we don't see that changing at least for the first half on the year. If you are planning on selling, there is no better time. Despite this, buyers are finding homes....our agents are just working harder to find off-market opportunities. Once a property hits the market these days, it's really hard to predict how high it might go.
San Francisco Kicks off 2026 with Explosive Price Growth
San Francisco's housing market roared into 2026 with remarkable year-over-year price appreciation. Single-family homes saw a stunning 16.23% increase in median sale price, with the median home selling for $1,653,325. Condos also posted gains, with the median sale price rising by 2.77% to $1,020,000. The demand for single-family homes remains exceptionally strong, with the average home selling for nearly 15% over the original asking price.
San Francisco Remains Firmly Entrenched in Seller's Market Territory
When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.
With just 0.8 months of single-family home inventory and 1.8 months of condo inventory on the market, the entire San Francisco market remains a strong seller's market. Both property types are well below the three-month threshold, giving sellers significant leverage in negotiations. Until substantial new inventory enters the market, buyers will continue to face stiff competition and limited options throughout San Francisco.
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