08/22/2026
DAVE'S AUGUST 2026 HOUSING MARKET REPORT
The Bay Area housing market continues to tell a story of divergence — and San Francisco is standing apart from much of the region.
Mortgage rates ended July near their highs for the year, putting some pressure on overall buyer demand. But in San Francisco, the story is less about mortgage rates and more about wealth creation, the AI boom and strong demand for family-ready homes in select neighborhoods.
San Francisco’s median sales price is up 25% year over year, while San Mateo County is up nearly 10%. By comparison, prices across the other eight Bay Area counties are essentially flat from a year ago.
What’s driving the difference? Jobs and wealth. AI companies continue to hire aggressively in San Francisco, creating a level of demand that isn’t being replicated throughout the broader region. Meanwhile, hiring has been more subdued elsewhere, creating a more measured housing environment.
Interest rates remain elevated amid inflation concerns tied to energy prices, tariffs and government spending. A meaningful slowdown in the labor market could eventually help ease inflationary pressure and create room for rates to move lower.
The takeaway for August: Local markets are increasingly moving in different directions. San Francisco is benefiting from concentrated economic growth, while other parts of the Bay Area are experiencing a more balanced market.
Real estate is local — but understanding the bigger economic picture is essential to making informed decisions.
📊 Want to know what these trends mean for your neighborhood, your home’s value or your next move? Let’s talk.
Dave Cunningham
Compas
REALTOR®
Always getting you more!
415.244.4779 | DRE # 01250089
davecunninghamsf.com
