01/24/2026
š San Francisco New Year Update š
In San Francisco, the Al startup boom has supercharged the real estate market since last fall, initiating the first positive shift in the psychology of buyers and sellers since the tariff and economic uncertainties stalled activity earlier in spring of last year. Furthermore, during mid-to-late summer of 2025, stock markets rebounded to hit new highs, interest rates began its sustained decline, and then by December, the median price increased considerably for many neighborhoods throughout the City. In fact, our buyer activity has already picked up this year, an indicator for rising demand heading into spring.
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After years of social, economic and demographic challenges, the City has risen to one of the strongest markets in the Bay Area. Stupendous amounts of new wealth are being created, and market conditions may well exceed those last seen in the IPO boom of 2019. The luxury home market is particularly competitive, and in the expensive districts - which includes Pacific & Presidio Heights, Cow Hollow and Marina - median house and condo prices already hit new peaks in 2025. The condo market, though not as heated as the house market, has begun a substantial recovery fueled by high-tech workers flocking to the city. If no unexpected economic shocks emerge, we expect a strong and active spring selling season.
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