By Stephanie Johnson
Published June 2026
May represents the height of the spring selling season in San Francisco — a period when buyer activity typically peaks and listing inventory often peaks as well. The data shows that demand and competition remains exceptionally strong across both single-family homes and condominiums, while inventory continues to lag, creating one of the most intense spring markets in recent memory.
Below is a clear breakdown of how the market has shifted compared to last year.
The Big Picture: Competition Intensifies as Inventory Tightens
May 2026 reinforces the trend that emerged earlier this spring: San Francisco remains a highly competitive market characterized by intense buyer demand and very limited inventory.
Single-family homes continue to lead the market, with median prices climbing to $2.2 million — an impressive 22.6% increase compared to last year. Condominiums also posted gains, though at a more moderate pace, with median pricing rising 3.4%.
Perhaps the most significant story is inventory. Months of supply fell by nearly 48% across both property types, leaving buyers with fewer options and increasing competition for well-positioned properties.
At the same time, sellers continue to receive offers well above asking price. Single-family homes achieved an average of 124.6% of list price received, highlighting the aggressive bidding environment that remains common throughout the city.
Inventory: Supply Remains the Defining Factor
Inventory continues to be the primary driver of market conditions in San Francisco.
For single-family homes, new listings declined by more than 14% year-over-year while closed sales increased by over 11%. This indicates that demand is absorbing available inventory far faster than new properties are entering the market.
The condominium segment tells a similar story. Although new listings declined only slightly, sales activity increased nearly 11%, reducing available inventory and contributing to the sharp decline in months of supply.
This ongoing imbalance between supply and demand is creating:
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Strong competition among buyers
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Frequent multiple-offer situations
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Continued upward pressure on pricing
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Favorable conditions for sellers
Unless inventory levels increase meaningfully during the summer months, these market dynamics are likely to remain in place.
Days on Market: Homes Continue to Sell Quickly
Market speed remains one of the strongest indicators of buyer demand.
Single-family homes sold in an average of just 16 days during May, improving from 23 days a year ago. Condominiums also moved considerably faster, with average days on market dropping from 48 days to 35 days.
Cumulative days on market followed the same pattern across both property types, indicating that properties are moving efficiently from listing to contract.
This accelerated pace reflects a market where buyers are prepared, motivated, and willing to act quickly when desirable properties become available.
Price Per Square Foot: Value Growth Continues
Price per square foot increased substantially across both market segments.
Single-family homes experienced a nearly 15% increase, while condominiums rose just over 12% year-over-year.
These gains suggest that price appreciation is being supported by broad-based demand rather than isolated luxury transactions. The strength of price-per-square-foot growth indicates healthy market fundamentals and continued confidence among buyers.
How This May Compares to Seasonal Trends
May is traditionally one of the strongest months of the year for San Francisco real estate, and this year's performance aligns with that pattern.
What aligns with seasonal norms:
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Elevated buyer activity
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Faster sales timelines
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Increased competition during the spring market
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Strong demand for well-presented homes
What stands out this year:
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Significant appreciation in single-family home values
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Inventory levels remaining exceptionally low
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Continued prevalence of over-asking-price sales
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Strong price-per-square-foot growth across both property types
The market is not simply active — it remains intensely competitive as buyers compete for limited inventory.
Seller Takeaways
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Inventory remains historically low, particularly for single-family homes
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Buyers continue to compete aggressively for desirable properties
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Homes are selling quickly and frequently above asking price
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Market conditions strongly favor sellers
Sellers who price strategically and prepare their homes properly continue to be well-positioned to maximize both pricing and terms in today's market.
Buyer Takeaways
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Competition remains intense across much of the city
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Multiple-offer situations continue to be common
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Many homes are selling significantly above list price
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Limited inventory reduces available options
Buyers should be prepared with financing, market knowledge, and a clear strategy to compete effectively in today's environment.
Looking Ahead
San Francisco's May market continues to reflect a supply-constrained environment supported by strong buyer demand.
With inventory levels remaining exceptionally low and sales activity continuing to outpace new listing growth, competitive conditions are likely to persist through the summer months. Unless a meaningful increase in inventory emerges, sellers should continue to benefit from favorable market dynamics while buyers should expect competition to remain strong.
For more information on the San Francisco market, or for data specific to your neighborhood or property type, feel free to reach out and book a call — I'm here to help you navigate it.