San Francisco Home Prices Rise 4.8% in Q2, Outpacing 2025’s Summer Slowdown

San Francisco’s housing market closed out the second quarter of 2026 with median home prices up 4.8% compared to the same period last year, according to data released this week by the San Francisco Association of Realtors. The city’s median single-family sale price now stands at $1.3 million, a sharp reversal from the sluggish price gains and patchy demand seen last summer.

More buyers are returning to the market, especially as the tech sector regains momentum and the busy summer sales window coincides with nascent optimism in the Bay Area’s broader economy. This renewed activity has fueled stronger price growth, especially in high-demand neighborhoods where inventory remains tighter than ideal.

Dogpatch and Pacific Heights Lead the Way

On the ground, the effects are being felt most sharply in neighborhoods with unique appeal and limited stock. In Pacific Heights, luxury properties on Broadway and Jackson Street topped $3,100 per square foot for the first time in a year, according to brokers at Compass. At the other end of the city, Dogpatch and Potrero Hill—historically less pricey—saw their median condo closing price jump to $1.08 million. Local agencies such as Vanguard Properties cited brisk competition for new builds near the Third Street Corridor and the Chase Center, with open house lines reminiscent of the city’s pre-pandemic frenzy.

The Mission District and Noe Valley also posted above-average gains, albeit slightly below those seen in 2021’s overheated market. Several new developments around Valencia Street have helped add to supply, but homes priced under $1.2 million still draw multiple competitive bids, agents say. The stalwart Marina District, traditionally a barometer for broader trends, saw a 5% annual increase, according to data supplied by the MLS.

Data Shows Steady Momentum Across Sectors

Evidence of the turnaround is evident in the quarterly sales figures. Citywide transaction volume was up 9% versus Q2 of 2025, reversing last year’s year-over-year dips. Condo sales in South of Market (SoMa) were particularly robust, up 14% in unit volume compared to last spring. Single-family homes lingered on the market for an average of just 16 days in June, down from 23 days a year prior—a sign of buyer urgency and limited active listings.

The most dramatic changes emerged at the high end. Homes over $4 million posted an 11% price gain year-on-year, a level not seen since before 2022. Meanwhile, city staff say recent reforms at the Mayor’s Office of Housing and Community Development have yet to impact affordable stock, but advocates are closely monitoring progress on Treasure Island and Mission Bay affordable housing projects slated for delivery later this year.

With the second half of 2026 underway, agents expect summer’s strong pace to carry into early fall, though the looming possibility of further interest rate hikes from the Federal Reserve could chill some buyer enthusiasm. For first-time buyers, the best advice remains: act quickly and consider emerging neighborhoods such as Bayview, where prices—now on a slight upward incline—still trail citywide averages. The next quarterly numbers, set to arrive in mid-October, should show just how sustainable this latest growth spurt has been.