San Francisco Real Estate
March 2026 Report
The Market Continues to Accelerate in
Possibly the Hottest Market in the Country
Moving into spring, soaring buyer demand vs. an extremely inadequate supply of
homes for sale continues to foster ferocious buyer competition, faster sales,
more overbidding and rapidly rising home prices. Luxury home sales rose over
200% year over year to hit their highest month-of-February count ever.
The upcoming months are typically among the most active of the year and
median home sales prices often hit their calendar-year highs in spring – though
that did not happen in 2025 due to autumn’s enormous AI-driven market boom.
As has been the case in recent years, houses are seeing stronger market
conditions than condos, but SF’s condo market is also rebounding dramatically.
More affluent buyers continue to play an outsized role in demand and home-
price appreciation.
The wild card in coming months is what sustained effects, if any, the Iran war
may have on inflation, interest rates, financial markets and consumer confidence.
Barring an extreme decline in economic conditions, we currently consider a
significant negative impact on the city’s housing market unlikely.
This analysis and data were compiled by our friend Patrick Carlisle at Compass.
The Fed left its benchmark rate unchanged at its March meeting. The board currently projects 1 rate reduction in 2026 (but that can change quickly).
Q4 GDP was revised significantly downward.
