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.