San Francisco Real Estate Market Update – February 2026

San Francisco Real Estate Market Update – February 2026

The San Francisco real estate market is making a strong statement in early 2026—and the numbers are turning heads.

In this update, we’re breaking down what happened in February 2026 compared to February 2025, covering single-family homes, condos, TICs, and co-ops. We’ll also walk through what these trends mean for buyers and sellers moving forward.

If you want a broader view of how the Peninsula is performing, you can also explore our San Mateo County market updates and neighborhood guides like Downtown San Mateo and Living in Burlingame to compare trends across the region.

Single-Family Homes: One of the Hottest Markets in Years

The data for single-family homes in San Francisco shows one clear theme: limited supply and surging prices.

Inventory Is Down Significantly

• New listings dropped from 215 (2025) to 189 (2026) — a 12.1% decrease
• Active inventory fell from 251 to 164 — a 34.7% drop

This sharp reduction in supply is one of the biggest drivers behind the current market conditions.

Sales Activity Remains Steady

• Pending sales: 171 → 172
• Sold listings: 145 → 145

Despite fewer homes available, demand has held steady.

Prices Are Surging

• Median price: $1.6M → $1.976M (+23.5%)
• Average price: $1.88M → $2.64M (+40.2%)

These are significant increases and reflect how competitive the market has become.

Homes Are Selling Faster and Over Asking

• Days on market: 26 → 23 days
• Homes selling over asking: 77.9% → 77.2%
• Average over asking: 12.9% → 16.8%

Months of Inventory

• Dropped from 1.4 → 0.9 months

This confirms that San Francisco is currently in a strong seller’s market.

What’s Driving the Market?

Low inventory is only part of the story.

There’s also a noticeable shift in buyer sentiment and overall city momentum. On the ground, there’s a growing sense of optimism around San Francisco’s direction, including:

• Improvements in city conditions
• Renewed activity in neighborhoods
• Increased confidence among buyers

From neighborhoods like the Richmond District and Sunset to Noe Valley, Bernal Heights, and Pacific Heights, activity is picking up across the board.

This renewed energy is contributing to one of the most competitive markets San Francisco has seen in years.

Condo, TIC & Co-Op Market: Strong Recovery Continues

The condo and multi-unit segment is also showing strong signs of recovery.

Inventory Is Declining

• New listings: 374 → 328 (-12.3%)
• Active listings: 742 → 477 (-35.7%)

This significant drop in inventory is tightening the market.

Demand Is Increasing

• Pending sales: 207 → 230 (+11.1%)
• Sold listings: 185 → 184 (stable)

Prices Are Rising

• Median price: $1.125M → $1.22M (+8.4%)
• Average price: $1.337M → $1.415M (+5.9%)

Homes Are Selling Faster

• Days on market: 57 → 42 days (-26.3%)

More Homes Selling Over Asking

• % sold over asking: 38.4% → 52.7%
• Avg over asking: 1.4% → 4.5%

Months of Inventory

• Dropped from 3.7 → 2.1 months

A Clear Trend: Buyers Are Returning to the City

During the pandemic, San Francisco saw a significant shift—especially in the condo and TIC market—as many buyers moved out of the city.

Now, we’re seeing the reverse.

Buyers are returning, driven by:

• Reopening of restaurants and businesses
• Stronger lifestyle appeal
• Proximity to work and entertainment
• Improved city conditions

This is fueling a steady recovery in the condo market, with increasing competition and rising prices.

What This Means for Buyers

For buyers, this market requires strategy and preparation.

• Expect strong competition, especially for single-family homes
• Be prepared to act quickly
• Understand that well-priced homes are still selling over asking

If you're also considering areas outside San Francisco, you may want to compare with nearby Peninsula cities through our Living in Burlingame and Downtown San Mateo guides, where market dynamics can differ slightly.

What This Means for Sellers

For sellers, this is a high-opportunity market.

• Low inventory means less competition
• Strong buyer demand is driving prices up
• Homes are selling faster and above asking

If you’ve been considering selling, this may be one of the strongest windows we’ve seen in recent years.

Final Thoughts

The February 2026 data tells a clear story:

• Single-family homes are extremely competitive
• Inventory is historically low
• Prices are rising rapidly
• Condos and TICs are in a strong recovery phase

San Francisco’s market is not just stable—it’s accelerating.

If you’re thinking about buying or selling in San Francisco or anywhere in the Bay Area, our team at Rise Homes would love to help you navigate the market with clarity and confidence.

You can always reach out to us here to start the conversation.