Are San Francisco home prices going up, or down, or does it even matter? Here's what you should really focus on when it comes to SF real estate and property values.
First things first, since you clicked on this post, you might be wondering… what exactly are San Francisco home prices right now? Spoiler: it's the least interesting thing we'll talk about here, but let's get it out of the way.
Median Sale Price of All San Francisco Homes (3-month rolling via SFARMLS)
“Wow, that’s a [big/small/surprising] number!” (Insert your own reaction here.)
The thing about home prices in San Francisco is that they don’t mean the same thing from one person to the next. The headline number—“San Francisco home prices reach $X-amount!”—is easy to publicize but actually really complicated to understand, because it’s 100% dependent on your personal situation and goals.
The reality of San Francisco real estate prices is that they can be a blessing or a barrier, depending on your perspective and personal situation. Let’s break a few down.
All the talk of sellers vs. buyers in real estate media belies a little-known fact: about 70–80% of home sellers are also buyers in any given year. It's obvious when you think about it: Most folks who sell their primary home will want or need to buy another one to live in!
So, while high property values in San Francisco might make your current home more valuable, you’ll likely face those same high prices when buying your next one (if moving locally). In that regard, it can be a wash for some San Francisco homeowners who sell their current home to buy another, but understanding your equity position and timing can still make a big difference.
High real estate prices in San Francisco are particularly challenging for first-time buyers. Without existing equity to leverage from a current home or other financial investments, affordability can be a significant barrier. In fact, first-time buyers represented just 24% of the national homebuying market share in 2024, down from 32% the year before according to the NAR Profile of Home Buyers & Sellers. This group faces steep down payments and higher monthly costs, making professional guidance absolutely essential.
Would you believe that to be true even for those with high-paying jobs in San Francisco who haven’t had the time to save up a large down payment? It’s why we’re seeing more and more first-time home purchases funded, in whole or in part, by the “Bank of Mom and Dad”.
If you are a parent with the resources to assist your kids in buying their first home, it can be a great way to set them up for a strong financial future. Learn more in our post: Investing in Real Estate for Your Adult Children in San Francisco.
Retirees, empty nesters, or anyone looking to “right-size” their home often benefit the most from high real estate prices in San Francisco. Selling in a high-cost market and moving to a lower-cost area can unlock significant equity for other financial goals, or just more fun retirement plans.
Empty nesters and retirees can also enjoy property tax benefits when they sell and buy a new home in California. Learn more in our post: A Prop 19 Guide to Downsize Your San Francisco Home.
Here’s an interesting (and counterintuitive) concept: lower prices aren’t always bad news, especially if you’re looking to upgrade. When the market slows down, it can actually be the perfect time to “trade up” to a larger or more desirable property.
Sounds crazy? Here’s the idea. Selling your current home at a lower price but buying something more expensive at an equally reduced rate positions you for greater long-term equity growth when the market rebounds.
As real estate investors commonly say, “You make your money on the buy.” For more on this strategy, check out our blog post: Upgrading Homes in SF? Here’s Why You Should Trade Up in a Down Real Estate Market.
Even with affordability concerns dominating headlines, demand for homes remains strong in many neighborhoods in San Francisco. Limited inventory, desirable locations, and steady interest from both local and international buyers keep competition warm.
If there were only 100 active homebuyers in SF, you might think demand is low. But if they were competing over only 20 desirable real estate listings, demand would seem extremely high! That's an example (not to scale) of how a low-inventory real estate market works—where home prices can keep rising even when it seems like many would-be buyers are priced out.
Thinking about selling? High property values in San Francisco create opportunities—but preparation is key. From staging to pricing strategies, taking the right steps can help you attract serious buyers and maximize your return.
Visit our Sellers page page for expert tips from our team of top San Francisco Realtors.
For buyers—especially first-timers—navigating high home prices in San Francisco can feel daunting, let alone saving up for the down payment. But with careful planning and expert guidance, it’s absolutely possible to find (and yes, even afford) your dream home, or at least a starting point in your home-equity journey.
A good first step is to start by getting pre-approved for financing and working with experienced professionals who know how to negotiate in our competitive market. At Danielle Lazier // Vivre Real Estate, we have some of the best home buyer specialists in the city on our team and a wide network of vetted pros if you need a recommendation.
Check out our Buyers page for more information.
Every transaction has a story—whether it’s overcoming a challenge, celebrating success, or in many cases both. Our SF Real Estate Case Studies blog posts highlight the real-life experiences of clients who we’ve assisted in buying and selling San Francisco real estate.
Want to keep tabs on the latest trends in San Francisco real estate prices? Sign up for our Newsletter to receive regular updates on market conditions, local news, and tips from our team of best SF real estate agents (no spam, just the good stuff, we promise!).
Whether you’re buying your first home or selling your long-time residence in San Francisco, we’re here to help as trusted real estate advisors and top 1% SF Realtors since 2002. Contact us today to tell us more about your situation and start planning your next move. We look forward to speaking with you!
