San Francisco ends 2025 on a high note with strong price appreciation

January 21, 2026

Aerial view of San Francisco skyline and Bay with “SF Bay Area Market Update” text overlay

San Francisco ends 2025 on a high note with strong price appreciation

Jennifer Burden, Founder/Associate Broker @ Legacy Real Estate

Quick Take San Francisco:

Median sale prices continued their upward trajectory in December, with single-family homes gaining 8.63% year-over-year.
Inventory levels have plummeted to historic lows, with fewer than 100 single-family homes available for sale in San Francisco.
The average single-family home is selling in just 15 days, giving buyers very little time to make decisions.

National Data Synopsis:

As interest rates continue to fall, median monthly P&I payments do as well, making housing slowly but surely more affordable on a national scale.
Mortgage rates are currently at the lowest point they’ve been at in recent years, as the Fed continues its rate cut cycle.
Despite falling interest rates, inventories still remain higher than they were at this point last year.
We very briefly saw rates break the 6% mark recently, following some commentary from Trump regarding the purchase of mortgage-backed securities by Fannie and Freddie.

The San Francisco housing market closed out 2025 with impressive year-over-year gains in median sale prices. Single-family homes saw an 8.63% increase, with the median home selling for $1,662,000. Condos also performed well, with the median sale price increasing by 5.21% to $1,075,000. Single-family homes continue to command significant premiums, with the average home selling for nearly 13% over the original asking price. Meanwhile, condos are selling right around their asking prices at 98% of list price.

Inventory hits rock bottom as fewer than 100 single-family homes remain on the market

December brought an unprecedented decline in inventory levels across San Francisco. There are currently just 93 single-family homes for sale in the entire city, representing a staggering 43.64% year-over-year decline. The condo market experienced a similar contraction, with inventory dropping by 44.10% to just 218 units. Combined, there are only 311 homes for sale in San Francisco, making it extraordinarily difficult for buyers to find suitable properties. Until more homeowners decide to list their properties, this severe inventory shortage will continue to define the market.

Listings are flying off the market at a breakneck pace

With inventory at historic lows, listings are spending very little time on the market before being snapped up by eager buyers. The average single-family home is selling in just 15 days, representing a 16.67% decrease compared to last year. Condos are also moving more quickly, with the average condo selling in 50 days, a 13.79% year-over-year decline. This rapid pace leaves buyers with very little time to evaluate properties and make informed decisions, creating an intensely competitive environment for anyone looking to purchase a home in San Francisco.

San Francisco has become one of the tightest seller's markets in the state

When determining whether a market is a buyers’ market or a sellers’ market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a sellers’ market, whereas markets with more than three months of MSI are considered buyers’ markets.

With just 0.5 months of single-family home inventory and 1.2 months of condo inventory on the market, San Francisco has become a deeply entrenched seller's market across all property types. These are some of the lowest MSI figures we've seen in years, and there is no indication that conditions will ease for buyers any time soon. Until significant new inventory enters the market, sellers will continue to hold all the cards in San Francisco.