San Francisco’s housing market is experiencing a jaw-dropping turnaround, transforming from a sluggish landscape to a red-hot real estate paradise. What was once a market crawling at 25 miles per hour is now roaring at 100 mph, with home sellers reclaiming their power and buyers competing fiercely for limited inventory.

The autumn of 2025 has brought unprecedented changes to the city’s real estate scene. Home prices have surged, with median house sale prices climbing nearly 6% to $1.85 million - the highest since June 2022. Luxury markets are also booming, with home sales over $5 million reaching their highest monthly total in four years.

A unique combination of factors is driving this explosive market: newly enriched AI professionals, lower interest rates, and a robust stock market are reshaping San Francisco’s housing dynamics. The inventory shortage is particularly striking, with home listings on November 1st being a third less than the previous year.

Bidding wars have become the new normal, with 75% of house sales and nearly half of condo sales exceeding their list prices. Interestingly, even properties requiring significant renovation are finding eager buyers, signaling renewed confidence in the city’s long-term potential.

Realtor Nina Hatvany notes the dramatic shift, explaining that properties once considered unsuitable for immediate listing are now being rushed to market. Fixer-uppers with water damage or structural issues are suddenly attractive, with buyers viewing them as opportunities rather than obstacles.

The market’s resilience is particularly noteworthy given historical volatility. Veteran real estate agents like Ted Bartlett see this as a sign of San Francisco’s evolving spirit - a shift from a bureaucratic “no, but” approach to a more proactive “yes, how?” mentality.

While optimism is high, experienced professionals caution against assuming perpetual growth. Market dynamics can change rapidly, and unexpected global events could potentially disrupt the current momentum.

For now, San Francisco’s real estate market is a testament to the city’s enduring appeal and adaptability, offering hope and opportunity in a landscape that seemed uncertain just a few years ago.