San Francisco, CA Housing Market Report

The San Francisco housing market entering December 2025 reflects a period of cautious stabilization characterized by modest price growth and a tightening rental market. With a median home value of $1,268,418, the city has seen a 2.11% year-over-year increase, signaling that while the explosive growth of previous decades has cooled, the floor for property values remains exceptionally high. The market currently sits in a neutral to slightly seller-favored position, evidenced by a sale-to-list ratio of 1.0, meaning homes are generally selling for their asking price. However, the increase in days on market to 63 suggests that buyers are exercising more due diligence and are no longer rushing into bidding wars at the same frequency seen in previous cycles.

Price trends over the last six months show a notable acceleration in the final quarter of the year. After a relatively flat summer where values hovered around the $1.22 million mark, prices began a steady climb in September, gaining nearly $40,000 in value by December. This upward momentum is likely driven by a combination of limited active inventory, which has dipped slightly by 0.44% compared to last year, and a significant surge in rental costs. With median rents jumping 11.68% year-over-year to $3,666, many long-term residents may be evaluating the transition from renting to owning, further supporting demand for entry-level and mid-tier condos and single-family homes.

Looking ahead, the San Francisco-Oakland-Berkeley metro area remains a complex environment for real estate participants. For sellers, the key to a successful transaction is patience, as the average time to sell has extended by a full week compared to 2024. For buyers, the current environment offers a rare window of price predictability, though the recent monthly uptrend suggests that waiting too long could result in higher entry costs. The primary challenge remains the lack of new inventory; with fewer than 5,000 active listings in a major metropolitan hub, competition for well-located properties will likely remain consistent through the first half of 2026.