Real Estate Market Update for February 2026
What’s New in San Francisco Real Estate
Analytics and charts from Compass
San Francisco’s median home sales prices continue to surge higher, a dynamic that is expected to continue in 2026. Underlying the price surge is an undersupply of homes for sale and increasing demand in the market. In January, we were already seeing homes selling faster, and competitive bidding has become more prevalent. The condo market is also experiencing a dramatic rebound, and rents have been rising rapidly. Interest rates are near multi-year lows, and stock markets, though recently volatile, remain near all-time highs. Signs are pointing to a very heated spring market.
Home Sales Volume
January sales volume reflects activity in the market during the typically slower holiday market in December and early January. House sales accounted for 38% of January 2026 sales, while condos accounted for 47%.
Active and Coming Soon Listings
The number of listings for sale as of February 1, 2026 fell 27% year over year, representing the lowest February 1 count in more than four years.
New Listing on Market
The number of new listings in January 2026 increased from December, but was down 19% compared to January 2025, reflecting a shortage of inventory.
Listings Accepting Offers and Absorption Rate
With low inventory, sales activity has been constrained in the market. Reflecting growing buyer demand combined with limited inventory, in January 2026, the absorption rate was 45% higher then in January 2025.
Average Days on Market
January sales reflect market conditions in December, the lowest month of the year. Houses continue to sell much faster than other property types.
Average Sales to List Price
In January 2026, the average sales price was 15% above the original list price for houses; for condos, it was 2% under list price.
Overbidding List Prices
46% of sales saw overbidding in January 2026, an increase from 37% in January 2025. 73% of house sales saw overbidding.
Price Reductions on Active Listings
The number of price reductions in January 2026 declined 33% year over year.
House Price Trends
The median house sales price in January 2026 rose 12.5% year over year.
Condo Price Trends
In January 2026, the median two-bedroom condo sales price hit its highest point since 2022, increasing about 8.5% year over year.
The median condo sales price has declined since the pandemic hit. However, in the past two years, the median price has been rising, and appreciation has been accelerating since the fall of 2025.
Mortgage Rates
As of February 5, the weekly, average 30-year conforming loan interest rate was 6.11%, remaining very close to its two-year low.
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.
