San Francisco Real Estate Market Update | August 2026

Mortgage rates ended July near their highs for the year, taking some momentum out of homebuyer demand. But in San 

Francisco, sales have been driven more by wealth creation than by mortgage rates: the AI boom has spiked demand, especially for family-ready homes in specific neighborhoods.

That boom is concentrated in the city proper, with modest overflow onto the Peninsula. San Francisco's median sales price is up 25% year-over-year; San Mateo County is up nearly 10%. In the other eight Bay Area counties, price trends look much more like the country as a whole, essentially flat versus a year ago. We've included a map showing price changes across the region so you can compare how each area is faring.

Rates remain elevated largely on inflation fears, with bonds under pressure from war-driven energy prices, tariffs, and unchecked government spending. What could bring rates down? A substantial slowdown in the labor market would ease some of that inflationary pressure. The U.S. labor market is already sluggish, and Northern California shows the same pattern: unemployment is low, but so is job creation. It's a low-hire, low-fire economy nationally.

Beyond rates, jobs matter directly for housing, since relocations for work are traditionally a major driver of demand. In the Bay Area, some AI companies are hiring fast, but the broader regional story is slightly fewer jobs in recent months. That divide shows up in housing: job creation in San Francisco is fueling demand there, while sluggish hiring elsewhere in the region means less.

The August 2026 overview: local markets are diverging from both the regional and national picture. Real estate is local, but the bigger picture still matters.

 

 

 

Single-Family Homes

● The median sale price increased 25.2% year over year but declined 4.7% month over month to $2.05 million.

● Median price per square foot rose 19.6% year over year to $1,181, but slipped 4.0% month over month.

● Closed sales declined 11.7% year over year and 35.4% month over month to 173 transactions, while pending sales fell 11.2% year over year and 32.7% from June to 150.

● Inventory remained constrained, falling 40.9% year over year, though it increased 2.6% from last month to 156 active listings.

● Average days on market declined 16.2% year over year but increased 32.1% month over month to 28 days.

Condominiums

● The median condo sale price increased 13.6% year over year and 3.1% month over month to $1.25 million.

● Median price per square foot rose 13.1% year over year to $1,103 but fell 2.1% month over month.

● Closed sales increased 24.9% year over year but declined 14.0% from June to 276 transactions, while pending sales rose 15.7% year over year and fell 32.6% month over month to 221.

● Inventory declined 42.5% year over year and 9.9% month over month to 417 listings.

● Average days on market fell 38.0% year over year but rose 15.3% month over month to 43.3 days.