Clients, friends, and colleagues:
San Francisco continues to buck the trend. With national home price appreciation is stuttering to a halt (and many regions seeing price declines), San Francisco's median home sales price continues to surge higher, a dynamic we expect to see continue in 2026.
The underlying factors are extremely inadequate supply of homes for sale vs. rapidly increasing demand due to the AI startup boom, rising rent prices, interest rates at multi-year lows, and stock markets at or near all-time highs.
The number of active listings (as of the last reading in January) is down a staggering 32.5% from last year.
Very fast sales and competitive bidding wars between buyers have become the norm. Though the city's house market has been seeing the lowest supply and highest demand, its condo market is also experiencing a dramatic rebound. Rets have also been in rapid ascent with the influx of young high-tech workers eager to work in AI.
AI startup valuations have been skyrocketing with substantial effect on employee wealth. Though national consumer confidence remains low and employment concerns continue, they don't appear to be impacting San Francisco. As has been the case in the past 2 years, more affluent buyers seem poised to play an outsized role in demand.
We're not even in March yet, but the spring market has sprung... There's a long list of examples, but here are a few that I explored with clients:
1) 3616 21st Street - a darling mid-century modern jewel in Dolores Heights.
2-Bed / 2-Bath / 1,902 sqft
Listed for $2,188,000
Sold for $4,225,888
January 30th, 2026
2) 3622 21st St - neighboring property of the above - potential to scale but in need of a gut remodel
2-Bed / 2-Bath / 1,862 sqft
Listed for $1,995,000
Sold for $3,300,000
February 17th, 2026
3) 133 Vicksburg St - Cute Victorian on a dual frontage lot in prime, convenient location of Noe Valley
3-Bed / 2-Bath / 1,935sqft
Listed for $2,695,000
Sold for $3,750,000
February 13th, 2026
If you have any questions about buying, selling, or the current market, don't hesitate to reach out.
Warmly,
Ron
