A recent New York Times article talked about a transition in other parts of the country to a buyer’s market. Well not in San Francisco; we have an unbelievable sellers’ market right now!
Toward the end of last year, the SF market started to pick up a bit with more properties going into contract. I even heard about a 4 bedroom home in the Inner Richmond that sold for $1M over the list price, which I assumed was an outlier. As the calendar turned to 2026, I expected a typically slow market which starts picking up after Super Bowl Sunday.
Boy, was I surprised at what happened next. I have been a realtor for 23 years in the city, through a few booms, and I have never seen this before.
A client of mine was interested in a mid-century home that could be moved into but that really needed a lot of work (kitchen, etc.), on 21st Street in Eureka Valley. It was listed for $2,188,000 and quickly sold at the end of January for $4,225,888, 93% and more than $2M over the list price! While the list price was lower than its value to create interest, it certainly did not seem like it was $2M lower than its value.
Then a 2 bedroom fixer on the same street listed for $1,988,000 quickly sold for $3,300,000 – an almost down-to-the-studs fixer goes for 66% and $1.3 million above asking! I wondered if the fact that the founder of Instagram lived a block away had anything to do with it. Could someone have been so desperate to be close to him that they had to buy a nearby home? My client decided to give up on Eureka Valley.
I meet with agents every Monday morning and have heard about sales in other parts of the city selling for $1M over the list price. Even the Inner Sunset has had some surprising sales. In January, a 3 bedroom home there on 9th Avenue was listed for $2,495,000 and sold for $4,050,000, $1,500,000 over the list price. Although it is starting to seem like a trend, I hope it is not; it’s certainly not a good one for buyers. One agent who expressed her frustrations to me told me she had recently made an offer on a home in the western part of the city that received 56 offers. Then a Cow Hollow condo she made an offer on received 15 offers. Her client didn’t get either one. The condo market had been slow but now things are even picking up there, too.
Needless to say, this certainly seems great for sellers. However, a friend who lives on 21st Street near the homes that just sold said while it certainly impacts favorably on the value of her home, she worries about her children being able to afford anything in San Francisco. Buyers are very frustrated and the full AI impact hasn’t even been felt yet.
Hang on, markets are cyclical and if a lot of inventory comes on the market after sellers hear how frenetic the market is right now, things could cool down a bit. I’m just working hard trying to get my buyers into contract and keep my sellers’ expectations in line with reality.:)
If you need any help buying or selling in this crazy market, I’m here for you!
