Real Estate Market Update for January 2026
What’s New in San Francisco Real Estate
Analytics and charts from Compass
While the greater Bay Area real estate market was down in the spring of 2025, the market here in San Francisco was charged by the AI startup boom, which dramatically accelerated this past fall. After social, economic and demographic challenges in the past few years, the city has shifted from being the weakest market in the Bay Area to the strongest.
Demand is still outpacing the supply of homes for sale, and it is possible the city’s median house sales price will reach a new high in 2026. The condo market is starting to see a substantial recovery as more tech workers are moving to the city.
At the start of 2026, interest rates were near multi-year lows and stock markets were at or close to all-time peaks. While broader political and economic factors have impacted markets recently, barring any further unexpected economic alarms, the spring market is poised to be busy. I’m already seeing an increase in buyer activity and well-priced homes are receiving strong interest.
Home Sales Volume
Sales in December 2025 decreased from November, but was up 22-23% higher compared to December 2024. While still low by historical standards, largely due to low inventory, sales volume in 2025 increased about 10% from 2024.
Active and Coming Soon Listings
The number of listings for sale on January 1 fell to a normal seasonal low; however, this year’s inventory is considerably lower, and the lowest count in many years.
New Listing Volume by Year since 2018
The number of new listings in 2025 decreased about 2.5% from 2024.
Listings Accepting Offers
With increased activity in the fall market, the number of listings accepting offers in December 2025 was double that of December 2024, 2023, and 2022.
Average Days on Market
Overbidding List Prices
Annual Number of Price Reductions since 2017
San Francisco is the only Bay Area county that saw a decline in the number of price reductions in 2025.
Median Home Values by Year Since 2005
House Price Trends
The median house sales price in 2025 rose around 4.6% from the previous year. Price appreciation has been accelerating since the fall market of 2025.
The Q4 2025 median house sales price reached its highest quarterly price since Q2 of 2022.
House Market Dynamics by Neighborhood in 2025
Average Days on Market for House Sales by Realtor District
Houses Selling Over List Price by Realtor District
Average House Sales Overbid and Underbid by Realtor District
Annual Median House Sales Prices Since 2015 by Realtor Districts
Condo Price Trends
The median condo sales price in 2025 rose about 1.3% from 2024. Q4 2025 median condo sales prices were up about 4.5% year over year.
Condo Sales Market Dynamics by Neighborhood in 2025
Annual Median 2 Bedroom Condo Sales Prices Since 2015 by District
Mortgage Rates
As of January 8, the weekly, average 30-year conforming loan interest rate was 6.16%, nearly at its 2-year low. As of January 22, Freddie Mac reported the rate was down to 6.09%. A year ago at this time, the 30-year rate averaged 6.96%.
The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information.
