Clients, friends, and colleagues:
San Francisco continues to buck the trend. With national home price appreciation 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 severely constrained 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 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 single-family home market has been seeing the lowest supply and highest demand, its condo market is also experiencing a dramatic rebound. Rents have also been rising rapidly 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.
If you have any questions, please feel free to reach out to me directly.
Cheers,
Faye
