Real Estate Market Update for March 2026
What’s New in San Francisco Real Estate
Analytics and charts from Compass
Increasing buyer demand and low inventory levels are resulting in a particularly competitive market as we get closer to spring. I have seen this from the perspective of buyers, with some listings receiving more than 30 offers. From the seller side, a recent listing of mine received several preemptive offers after being on the market for three days. The condo market is rebounding, and luxury home sales alone rose over 200% year over year, hitting their highest count for the month of February ever. The longer-term impact of the Iran war on inflation, interest rates, financial markets, and consumer confidence is still uncertain. However, barring any extreme changes, the market here is looking busy for spring.
Home Sales Volume
House sales made up 44% of sales in February 2026. Overall sales increased from January, but remain constrained by low inventory.
Active and Coming Soon Listings
The number of listings for sale as of March 1, 2026 fell 29% year over year.
New Listings on Market
The number of new listings in February 2026 ticked up slightly from January, and remained essentially unchanged year over year.
Listings Accepting Offers and Absorption Rate
While the number of listings in February 2026 was lower year over year, the number of homes going into contract rose. And with demand in the market increasing, the absorption rate in February 2026 was about 60% higher than in February 2025.
Average Days on Market
Average Sales to List Price
In February 2026, the average sales price was 10% above the original list price, the highest reading since the spring of 2022. For houses alone the average was 16.5% and for condos, it was 4.5% over list price.
Overbidding List Prices
64% of sales saw overbidding in February 2026, the highest percentage since mid-2022, with 77% of house sales and 54% of condos seeing overbidding.
Price Reductions on Active Listings
The number of price reductions in February 2026 declined 59% year over year.
House Price Trends
The 3-month-rolling median house sales price in February 2026 rose 16% year over year.
Condo Price Trends
In February 2026, the 3-month-rolling, median two-bedroom condo sales price rose 8% year over year.
Mortgage Rates
As of March 5, the weekly, average 30-year conforming loan interest rate was 6%. With geopolitical changes impacting financial markets, mortgage rates have gone up since then, but remain near 6%, which is still very close to the lowest rates we’ve seen in 3.5 years.
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.
