San Francisco Home Prices Post Modest Quarterly Gains, Up 4% Over Last Year

San Francisco’s property market recorded a 4% increase in home prices in the second quarter of 2026 compared to the same period last year, pushing the city’s median sale price up to $1.35 million according to data released this week by the San Francisco Association of Realtors.

The latest numbers arrive in a season marked by record-setting Bay Area heat and a flurry of tech sector activity—a combination that’s already shaping both day-to-day life and bigger economic patterns in the city. Homeowners and buyers alike are watching these trends intently, as volatility in other markets and climates elsewhere continues to make Bay Area real estate an attractive, if pricey, investment option.

Mission and Dogpatch Outpace Stalwarts

While classic high-price enclaves like Pacific Heights and the Marina still command premiums (with several recent single-family home sales topping $5 million along Broadway and Chestnut Street), it’s the city’s southeastern neighborhoods that have notched the most notable price gains. According to broker data aggregated by Redfin, median condo prices in Dogpatch climbed 7% year-over-year, crossing the $1.1 million threshold for the first time. The Mission District saw single-family homes approach a $2 million median, buoyed by new employers moving into the neighborhood’s eastern blocks and developments such as the much-discussed 16th Street BART station upgrade.

Local agents cite a return in tech demand, especially among buyers relocating for positions with companies like OpenAI’s new SoMa campus and older standbys such as Salesforce Tower tenants. That influx has spurred not just sales but also competition for turn-key units, particularly near transit corridors along Valencia and Third Street. Buyers are increasingly willing to pay a premium for move-in-ready properties in walkable, transit-served areas, according to Paragon Real Estate’s June report.

Data Show Market Rebound

Numbers from the San Francisco Association of Realtors support the rebound narrative. Median prices across all property types hit $1.35 million for the quarter ending June 30 — up from $1.3 million a year prior. Transaction volume also rose, with 1,260 homes sold, marking a 6% uptick from the second quarter of 2025. The city’s supply of homes remains tight; new listings are still down about 10% compared to pre-pandemic averages, contributing to the upward price pressure. Condominium sales in South of Market and Mission Bay were especially brisk, with days-on-market dropping to 19 on average, versus 27 this time last year.

The upward swing comes despite—or in some cases, because of—a national market roiled by heatwaves, inflation, and uncertainty elsewhere. Several local mortgage brokers report increased inquiries from buyers relocating from other West Coast cities, seeking relative economic stability and access to the city’s cultural and employment hubs.

Advice for Buyers and Sellers

With inventory still well below what analysts consider a balanced market, real estate professionals say the rest of 2026 looks set to stay competitive, especially in neighborhoods close to major employers or transit. Would-be buyers should expect limited room for negotiation, particularly in southeast hotspots and established neighborhoods like Noe Valley and Bernal Heights. Sellers, on the other hand, are enjoying brisk activity—but may need to price realistically, as even motivated buyers show limited appetite for fixer-uppers.

As the region heads into late summer, open house foot traffic in areas like Potrero Hill and Mission Creek is expected to climb further, testing whether the rebound pace holds through the year’s second half. Market-watchers say homeowners considering selling may want to act sooner rather than later, as further mortgage rate hikes are widely rumored before the end of 2026.