San Francisco continues to distinguish itself from much of the broader Bay Area housing market.
While elevated mortgage rates are weighing on buyer demand nationally, San Francisco has experienced particularly strong price appreciation, supported in part by wealth creation and employment growth tied to the AI sector. The latest data shows just how differently the city is performing compared with many surrounding markets.
San Francisco Home Prices Remain Strong
For single-family homes, the median sales price reached $2.05 million in July, representing a 25.2% increase year over year, despite declining 4.7% from June.
The median price per square foot reached $1,181, up 19.6% from the previous year.
Inventory Remains Tight
One of the major forces supporting San Francisco home prices is limited supply.
Single-family home inventory was down 40.9% year over year, with only 156 active listings at the end of July. Meanwhile, 173 single-family homes closed during the month.
Homes spent an average of 28 days on market, down 16.2% compared with a year earlier.
San Francisco's Condo Market Is Strengthening Too
The condominium market also posted significant year-over-year gains.
The median condo sales price increased 13.6% year over year to $1.25 million, while median price per square foot rose 13.1% to $1,103.
Closed condo sales increased an impressive 24.9% year over year, even as inventory declined 42.5% to 417 listings.
What Does This Mean for Buyers and Sellers?
For sellers, limited inventory continues to create opportunities, particularly for well-positioned homes in neighborhoods experiencing strong demand. Pricing and presentation still matter, but sellers may be entering the fall market with considerably less competition than a year ago.
For buyers, San Francisco remains competitive. Understanding neighborhood-level pricing, recent comparable sales, and property-specific demand will be increasingly important when deciding how aggressively to approach an offer.
As we head toward the fall market, San Francisco remains one of the Bay Area's most closely watched housing markets.
Thinking about buying or selling in San Francisco? Contact us for a conversation about what these market trends could mean for your specific neighborhood, property, or real estate goals.
Source: Compass Market Research, August 2026. Data through July 2026
