San Francisco Housing Market: Condo Supply Is Tighter, but Sellers Still Have to Earn Their Price

San Francisco’s condo market feels tighter, but that does not mean every seller can overprice and get away with it. February 2026 brought higher median home prices, a higher price per square foot, faster sales, and fewer price cuts than a year ago. But closed sales and pending sales still trailed February 2025, so this is not a broad-based seller’s market. This is not a market where every condo sells fast; it is a market where the right condo does.

Buyers in San Francisco should stay patient on the wrong listings, but move quickly on the right ones. Nearly 29% of condo listings still took a price cut in February, which means stale or overpriced homes can still create negotiating room.

At the same time, hesitation is riskier on well-positioned listings than it was a year ago. Median days on market fell to about 45 days, and more condos went off market within two weeks. If a unit is well-priced, well-presented, and in a building buyers already like, waiting may cost you more than negotiating will save you.

Do not count on broad price relief. The median home price rose to about $2.12 million, and price per square foot also increased from a year ago. The better strategy is to stay disciplined on value at the property level rather than assume the whole San Francisco condo market is about to get cheaper.

Sellers have a better setup than they did a year ago, but they still have to earn their price. Buyers are paying more in closed deals, homes are moving faster, and fewer listings are cutting prices to find a buyer.

The key is to price realistically at launch. Median listing price was about $1.97 million in February, essentially flat from a year earlier, and listing price per square foot was also basically flat. That gap matters: seller expectations did not rise much, but realized market outcomes did. In other words, buyers are rewarding the best-priced condos, not handing out blanket approval to ambitious asking prices.

The first two to three weeks matter most. If showings and offers are weak early, that is a pricing signal, not bad luck. In this market, quick adjustment beats sitting still and hoping buyers come around.

Condo prices are holding up in actual transactions, which supports the view that the market is firmer than it was a year ago.

Buyers are still paying more on a size-adjusted basis, especially for condos that meet the market cleanly.

The better listings are moving faster, so buyers have less time to linger on homes that are priced right.

Buyers have fewer choices than last February, which is helping support prices even without a full demand breakout.

Sellers have more support than they did a year ago, but the need for cuts has not disappeared, which is why overpricing still gets punished.

February strengthened the case that buyers are still willing to pay up for the right San Francisco condo.

Underlying pricing pressure improved as the market picked up speed.

February moved much faster than January, which tells buyers and sellers that timing and early traction matter more now.

Buyers got a few more options, yet the market did not loosen in a meaningful way.

Demand improved from January, but it still has more to prove before sellers can claim broad pricing power.

San Francisco’s condo market is firmer, but still selective. Home prices are rising in closed deals, yet pricing power is strongest on the listings that come to market at the right number and weakest on the ones that test buyers too aggressively.

The single most important signal in the next monthly update is pending sales. If pending sales can move above the same month last year, it would confirm that stronger pricing and faster absorption are being backed by broader demand. If pending sales stall or stay below last year, the main story will hold: tighter supply is helping the market, but sellers still have to earn their price.