San Francisco Home Prices Post 2.4% Quarterly Gain, Outpacing 2025 Levels

San Francisco home values climbed 2.4% in the second quarter of 2026 compared with the same period last year, according to fresh data from the San Francisco Association of Realtors. The citywide median now sits at $1.32 million, signaling a return of buyer competition and pushing the market back into growth territory after a sluggish 2025.

For buyers and sellers alike, the direction of home values is a high-stakes question. With the Federal Reserve’s spring rate cuts trickling through to mortgage lenders and local open houses once again drawing lines down the block on the weekends, the question now is whether the recent uptick represents a lasting recovery—or just a seasonal jolt.

Uneven Gains Across Neighborhoods

Not every neighborhood is experiencing growth at the same pace. Pacific Heights, always the city’s bellwether for luxury real estate, charted a median sale price of $4.15 million in the second quarter—up 3.8% from Q2 2025, according to figures tracked by Vanguard Properties. Meanwhile, the Dogpatch and adjacent Mission Bay corridor saw nearly 5% annualized growth, driven by strong demand for newer condos with amenities, and the continued return of biotech professionals to UCSF's Mission Bay campus.

Other parts of the city tell a different story. The Sunset District’s modest single-family homes held steady, increasing just 1.1% year-over-year. The Tenderloin, which remains under pressure from both safety concerns and an oversupply of smaller units, saw median prices drop slightly from last spring, according to monthly reports from Compass.

The Numbers Behind the Shift

The overall $1.32 million median reflects 928 closed transactions April through June, a 12% jump in sales volume compared to the same span in 2025—when inventory was stuck near decade lows and buyer confidence lagged. The average time on market for a single-family home fell to 18 days citywide, down from 26 days last year.

Realtors cite a combination of factors for the rebound: a busy tech hiring season with major announcements from the Salesforce Tower and Google’s downtown campus, plus improved affordability for some buyers as rates slipped below 6% for jumbo loans at local credit unions like San Francisco Federal.

Luxury condo activity in the Marina and South Beach also spiked, with 44 units at The Avery closing in Q2 and several new launches along Folsom Street drawing investors who sat out last year’s uncertainty.

Looking ahead to late summer, agents caution that pace may moderate as more listings hit the market. For buyers, the good news is increased choice—over 1,200 homes were actively listed on July 1, the highest since pre-pandemic 2019, according to MLS data. Sellers should expect strong interest for well-priced homes, but less frenzied bidding wars than mid-pandemic peaks. In a year marked by global volatility and extreme weather events, San Francisco’s housing market has so far managed a surprisingly stable performance—though buyers and sellers are watching every data release for signs the trend will hold.