San Francisco entered the late-summer market with fewer homes available, rising prices, and continued competition among buyers.
While much of the Bay Area experienced a seasonal slowdown in August, San Francisco stood out. The city's inventory contracted substantially from a year earlier, while both single-family homes and condos posted significant year-over-year price gains.
Here's what the latest numbers tell us about the San Francisco housing market.
Home Prices Continued to Climb
August's median sale price for a single-family home reached $1.855 million, up 24% year over year, according to the report. The median price for a condo rose 22% to $1.233 million.
Price per square foot also increased approximately 19% for both property types.
Those citywide numbers only tell part of the story.
San Francisco's neighborhoods vary considerably in price. The report's August single-family data show median prices ranging from more than $6 million in Pacific Heights and the Marina to below $1 million in some neighborhoods.
That variation makes neighborhood-level data especially important when evaluating a home's value.
Inventory Is Exceptionally Tight
One of the biggest stories in San Francisco right now isn't simply price — it's how few homes are available.
Combined active inventory fell approximately 35% year over year to 570 listings, even as new listings increased.
Single-family inventory declined 31%, while active condo inventory dropped 36%.
For single-family homes in particular, the imbalance between supply and demand was striking. The report recorded 169 listings in contract compared with only 157 active listings, pushing the absorption rate to 108% and months of supply down to approximately 1 month.
For buyers, that means desirable homes can still attract considerable attention even when overall sales activity slows.
For sellers, limited competing inventory can create an advantage — particularly when a property is positioned and priced appropriately.
Competition Remains Strong
The August numbers also show just how competitive San Francisco's single-family market has become.
Approximately 85% of single-family home sales closed above asking price, an increase of 18 percentage points from a year earlier.
Condo competition strengthened as well, with the share of sales closing above asking rising to approximately 54%.
Homes also moved more quickly.
Average days on market for single-family homes declined from 30 days to 21 days, while condos improved from 60 to 44 days.
Together, these numbers point to a market where buyers remain willing to compete for the right property despite broader economic uncertainty.
Condos Are Showing Renewed Strength
San Francisco's condo market deserves particular attention this month.
Across much of the Bay Area, condo conditions remained uneven. San Francisco, however, was the only county in the regional report where condos posted both meaningful price growth and transaction growth.
Condo sales increased 11% year over year, while the median price rose 22% to approximately $1.23 million. At the same time, active condo listings declined 36%.
That combination makes San Francisco's condo market particularly interesting heading into fall.
It is still important to look beyond the citywide median, though. Individual condo markets can vary considerably by neighborhood, building, amenities, HOA considerations, condition, and price point.
Fewer Sales Don't Necessarily Mean Weaker Demand
Single-family transaction volume was lower in August, with 150 homes closing, down 9% year over year and 16% from July.
Normally, falling sales might suggest weakening demand. In San Francisco, however, the inventory picture provides important context.
With fewer properties available, buyers simply have fewer opportunities to transact. At the same time, homes are selling faster and a large share of single-family sales are closing above list price.
The report therefore characterizes San Francisco as a constrained market in which limited supply is restricting transaction volume even as demand remains strong.
What Does This Mean for Buyers and Sellers?
For buyers, San Francisco remains highly property-specific. Limited inventory and frequent overbidding mean preparation matters, but conditions can differ substantially between neighborhoods and between houses and condos.
For sellers, low inventory may reduce competition from other listings, but strong citywide statistics don't guarantee the same result for every property. Pricing, condition, location, presentation, and current neighborhood activity remain critical.
And for both buyers and sellers, citywide averages should be viewed as a starting point rather than the complete picture. San Francisco's many neighborhoods differ significantly in price, housing stock and market dynamics.
Looking Ahead to the Fall Market
August typically marks a transition from the spring and summer market toward the fall selling season. Across the Bay Area, months of supply increased in most counties as activity cooled seasonally.
San Francisco enters that transition with unusually tight inventory, higher prices and substantial competition for available homes.
Whether you're considering selling, searching for a home, or simply wondering what your property may be worth in today's market, the most useful analysis starts at the neighborhood — and sometimes even the block — level.
Thinking about buying or selling in San Francisco? Reach out for a closer look at current sales and market conditions in the neighborhoods you're considering.
Source: Compass September 2026 San Francisco House & Condo Market Outlook. Data through August 2026. Market statistics are approximate and subject to revision.
