Good Morning.

San Francisco real estate continues to move at a pace rarely seen. Unless you are actively buying or selling today, it is difficult to appreciate the urgency, competition, and decision-making pressure unfolding in real time. One of the most common questions I hear from buyers is simple: Where is all this aggressive bidding coming from? Consider the following:

U.S. startups raised a record $267.2B from venture investors in the first quarter
65.9% ($176.1B) went to San Francisco metro area companies
In San Francisco, OpenAI, Anthropic, Databricks and World Labs raised $160.6B (91% of all startup funding tied to the San Francisco metro area)
OpenAI alone raised $122B in the quarter (76% of all SF$)
Next metro outside of the Bay Area: New York metro-area startups raised $11.1B

Why Buyer Demand Remains Strong in San Francisco Real Estate

Based on this data, the current market appears far from equilibrium, with little sign of near-term demand tapering. Upward pressure likely remains and it may not level out for another 12–24 months.

As with the dotcom bubble, we will see our share of AI versions of “socks.com,” and many companies will evaporate. With the sheer mass of capital invested in San Francisco companies, the winners will flourish and drive the local employment base for decades to come.

A major topic of discussion with buyers is how the market may look two to three quarters from now. It becomes a very real conversation when a buyer is considering paying 15% over asking ($1M+) to secure a home that will establish a new neighborhood benchmark. Each headline sale resets expectations. The next seller often enters the market from a higher starting point. Some buyers embrace the long view and act decisively. Others choose different Bay Area markets or pause until conditions shift.

Luxury Homes San Francisco Continue to Attract Buyers

On top of that, pending IPOs will definitely bring more buyers to an already intense market (Goldman Sachs analysts put the value of this year’s predicted IPOs at a record $160B).

At the top end of the market ($5M+), some buyers employed by leading AI firms do not need to wait for IPOs. They already have liquidity through signing bonuses, stock buyback programs, and secondary markets. They are entering the market now while many peers still need to wait. That dynamic continues to support demand for luxury homes San Francisco and high-end homes San Francisco.

Homes for Sale San Francisco: Supply Remains Tight

This all should be music to the ears of a potential seller. Supply remains unusually low. The number of homes listed for sale fell 28% year-over-year. The inadequate supply of listings compared to soaring demand continues to pressurize the market.

For many homes for sale San Francisco, limited supply and strong presentation continue to create competitive outcomes.

Recent San Francisco Real Estate Market Highlights

Some interesting data points:

The median single-family sales price hit $2,150,000, up 18% year-over-year, exceeding the previous peak of $2,050,000 in April 2022
The median condo sales price was $1,357,500, up 27% year-over-year, marking the second-highest monthly price ever after the $1,375,000 peak in April 2022
22 luxury single-family sales of $5M+ were reported in March 2026, up 83% year-over-year
24 luxury condo sales of $3M+ were reported in March, up 380% year-over-year
85% of house sales sold over list price with an average sale price 23% over list price, tied with April 2022 for the highest overbid percentage ever

The median single-family sales price hit $2,150,000, up 18% year-over-year exceeding the previous peak of $2,050,000 in April 2022.

The median condo sales price was $1,357,500, up 27% year-over-year, marking the second-highest monthly price ever after the $1,375,000 peak in April 2022.

22 luxury single-family sales of $5M+ were reported in March 2026, up 83% year-over-year, surpassing the previous peak of 21 sales in June 2021.

24 luxury condo sales of $3M+ were reported in March, up 380% year-over-year, exceeding the previous high of 17 sales in August 2021.

85% of house sales sold over list price with an average sale price 23% over list price, tied with April 2022 for highest overbid percentage ever.

Should You Sell Your Home in San Francisco?

If your property no longer fits your lifestyle, requires more upkeep than you want, or you are considering a strategic move, this may be a favorable seller window worth evaluating. Low inventory can create meaningful leverage when paired with proper preparation, thoughtful pricing, and professional execution.

If you are considering whether to sell your home in San Francisco, timing and strategy matter.

Need a San Francisco Home Valuation?

If you would like a confidential consultation regarding pricing, timing, or neighborhood-specific demand trends, I’m happy to help. Whether you are planning now or simply thinking ahead, an accurate San Francisco home valuation is often the best place to start.

About the Author


Scott Whelan provides San Francisco real estate sales and advisory services. His work centers on pricing strategy, market positioning, and identifying off-market opportunities.


For detailed comps, off-market opportunities, or a property-specific analysis, contact Scott Whelan directly.

May 2026: San Francisco Real Estate Insider