San Francisco Real Estate Market Update: August 2026

San Francisco continues to move to its own beat. While mortgage rates near their highs for the year have cooled buyer demand nationally, the local market is being propelled by something else entirely — wealth creation from the AI boom — and it's driving demand for family-ready homes in the city's most sought-after neighborhoods.

The big picture

The headline is divergence. San Francisco's median sale price is up about 25% year over year, and San Mateo County is up nearly 10%. Across the other eight Bay Area counties, price trends look much more like the country as a whole — essentially flat versus a year ago. In other words, the strength is concentrated in the city itself, with modest overflow onto the Peninsula.

Rates remain elevated largely on persistent inflation concerns, with pressure from energy prices, tariffs, and the federal spending and deficit picture. What could bring them down? A meaningful cooling in the labor market would ease some of that pressure. Right now the national economy is "low-hire, low-fire" — unemployment is low, but so is new job creation, and Northern California shows the same pattern.

Jobs matter for housing directly, since relocations for work have always been a major source of demand. In the Bay Area, some AI companies are hiring quickly even as the broader region adds slightly fewer jobs. That split shows up in the housing market: hiring in San Francisco is fueling demand here, while slower hiring elsewhere means softer demand across the rest of the region.

Single-family homes

The single-family median rose 25.2% year over year to $2.05 million, easing 4.7% from the prior month, with median price per square foot up 19.6% year over year to $1,181. Inventory stayed tight — active listings were down about 41% from a year ago at 156 — and closed sales came in at 173 for the month, with homes averaging 28 days on market. The picture is a supply-constrained market where well-prepared homes in desirable neighborhoods continue to command premiums.

Condominiums

The condo median climbed 13.6% year over year to $1.25 million, up 3.1% from the prior month, with median price per square foot up 13.1% year over year to $1,103. Closed sales were up nearly 25% year over year at 276, while inventory tightened sharply — down about 43% from a year ago to 417 active listings — and condos averaged about 43 days on market. Condos are moving, but with a bit more room and time than the single-family market.

What it means for buyers and sellers

For sellers, especially of single-family homes in strong neighborhoods, conditions remain favorable: low inventory and concentrated demand are supporting prices and, for well-prepared listings, competitive offers. For buyers, the takeaway is preparation — in a tight, fast market, being fully ready (financing lined up, priorities clear, and an experienced agent guiding strategy) is what wins homes. And because San Francisco is diverging so sharply from the regional and national story, national headlines are a poor guide to what's actually happening on your block.

What this means for your home or your search

Real estate is local — and in San Francisco right now, it's hyper-local. The Callan + Sol Team can give you a current, neighborhood-specific read, whether you're thinking about selling or looking to buy. Reach Vincent Sol at (415) 279-6044 or Teresa Callan at (415) 999-1302, or contact the Callan + Sol Team at Compass.

Data through July 2026, compiled from Compass market reports; figures are for San Francisco and subject to revision. Information is deemed reliable but not guaranteed and should be confirmed against current MLS data before making buying or selling decisions. This is not intended to solicit property already listed. Equal Housing Opportunity.