Quick Take:

• Single-family home prices have surged more than 26% year-over-year, marking the strongest annual gain we’ve seen this year.
• Inventory has reached crisis levels, with single-family home listings down nearly 60% compared to last year.
• Single-family homes are selling in just 12 days, while condos are moving in about three weeks.

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Single-family home prices post their strongest year-over-year gain of 2026

June brought extraordinary price appreciation to San Francisco’s single-family home market, with the median sale price climbing 26.47% year-over-year to $2,150,000. This marks the strongest annual gain we’ve seen so far in 2026. The condo market, by contrast, saw much more modest growth, with the median sale price inching up just 0.63% to $1,200,000. Competition for single-family homes has reached unprecedented levels, with the average home selling for more than 26% over the original asking price. Condos are also commanding premiums, selling for nearly 6% over asking on average.

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San Francisco’s inventory crisis reaches new extremes

The inventory shortage that has defined San Francisco’s market throughout 2026 has reached its most severe point yet. There are currently just 135 single-family homes for sale in the entire city, representing a staggering 59.09% decline compared to June 2025. To put this in perspective, there were 330 single-family homes available last June, meaning the market has lost nearly two-thirds of its inventory in just one year. The condo market is also under severe pressure, with inventory down 44.25% year-over-year to just 378 units. With barely 500 total homes available for sale citywide, buyers are facing the most limited selection in recent memory.

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Listings continue to move at a rapid clip

The extreme scarcity of inventory has kept the market moving at a blistering pace. The average single-family home is selling in just 12 days, representing a 14.29% decrease compared to last June. The condo market has also accelerated significantly, with the average condo selling in 23 days, a 28.13% year-over-year decline. For single-family home buyers in particular, the combination of razor-thin inventory and rapid sales velocity means that hesitation is simply not an option when a desirable property hits the market.

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San Francisco has become one of the tightest seller’s markets in the country

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 seller’s market, whereas markets with more than three months of MSI are considered buyers’ markets.

With just 0.7 months of single-family home inventory and 1.8 months of condo inventory on the market, San Francisco has become one of the most extreme seller’s markets in the state. The single-family market’s 0.7 months of supply means that at the current pace of sales, every available home would be sold in just three weeks. Both figures are down more than 50% year-over-year, with single-family MSI plummeting 61.11% and condo MSI dropping 53.85%. Sellers hold virtually all the leverage in today’s market, and there is no indication that conditions will ease for buyers any time soon.

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– theFrontSteps SFNewsletter – July 2026