San Francisco Home Prices Rebound: Q2 Growth Outpaces Last Year

San Francisco's median home sale price reached $1.3 million in the second quarter of 2026, a 7% increase from the same period last year, according to the latest data from the San Francisco Association of Realtors. The citywide uptick reverses last year’s downturn and marks the strongest quarterly gain since 2021.

Demand Driven by Tech, Changing Buyer Tastes

The increase signals renewed buyer appetite following two slow summer cycles and reflects the re-emergence of tech money in the local market. This year, big names such as Salesforce and OpenAI have expanded their teams, fueling more high-income buyers, especially in neighborhoods with newer condo stock and lively amenities. Brokers note a distinct shift: buyers who once ignored the Dogpatch and Mission District are now targeting them for convenience to offices and buzzy retail axes like Valencia Street.

On South Van Ness, a newly renovated four-bedroom sold for $3.2 million in June—30% above its 2022 price. Nearby, in Dogpatch, inventory has tightened to barely a month’s supply, and units at Esprit Park traded an average of 18 days after listing, per Redfin's local figures. By contrast, Pacific Heights still commands the city’s highest per-square-foot premiums. One six-bedroom mansion on Broadway recently changed hands at $17 million, though growth in ultra-luxury homes has been less brisk than in middle-market condos and single families.

Condos and Starter Homes Lead the Price Push

Condos accounted for much of the price rise, particularly in the SoMa and Mission Bay corridor. CoreLogic reports the median condo sale citywide jumped 9% on the year, with demand concentrated around new-build towers on Folsom Street and in the Mission Rock development near Oracle Park. First-time buyers, long priced out, have returned to the market in greater numbers—often aided by city-run assistance like the Mayor’s Office of Housing’s DALP (Downpayment Assistance Loan Program), which has distributed over $12 million in grants so far this year.

The data also shows more activity in the $900,000 to $1.2 million range, a segment previously stagnant since mid-2022. According to Compass, June’s volume of accepted offers in that bracket was up 14% year-on-year. Mortgage rates, while still higher than pre-pandemic lows, have steadied at around 6.4%, spurring a sense among buyers that deals in Mission, Dogpatch, and the Inner Sunset may not last long.

Looking ahead, most agents interviewed expect moderate growth through September unless another round of tech layoffs or a sudden rate spike chills enthusiasm. For now, competitive bidding has returned to districts with proximity to Caltrain, the Third Street T line, and emerging restaurant scenes. Prospective buyers should prepare for multiple offer situations—especially in neighborhoods like Hayes Valley and Bernal Heights, where inventory remains tight and upward price pressure remains strong.