The Compass Market Report slides on a flipbook can be found here. 

Dear Clients, Colleagues and Friends,

 Happy New Year! We are so pleased to announce that for the 9th year running, we are the number one real estate team (across all brokerages) in San Francisco, as measured by sales volume! (per MLS rankings). Thanks so much to our past and present clients for their continued support. Our team (and family) enjoyed a wonderful holiday season full of family gatherings and are re-energized to hit the ground running for our 2026 spring selling season. 

This year, it appears our Spring market is starting earlier than expected – closings and listings continued throughout December over the holidays (the number of sales in December 2025 was up a whopping ~23% from December 2024) and buyers have seemed so desperate for inventory that many agents have decided to launch their listings sooner rather than later. Typically, the San Francisco Spring market begins after the Super Bowl (first weekend in February) but this year, we are already seeing new inventory. The weather forecast of no rain for a few weeks is helping, as typically during a rainy January agents will hold their listings until the sun returns. 

Moving into 2026, it is very much a seller’s market and buyers are getting accustomed to heavy competition for good inventory, particularly single-family homes. Prices continue to set records in the Richmond and Inner Sunset, as well as all over the city. We have several buyers looking for great homes and coming up empty-handed! Demand is far outpacing supply and it is expected that, barring any unforeseen geo-political event or economic turmoil, prices will soar to new highs in 2026 — mostly due to the influx of AI capital, and the combination of a high stock market, lowered interest rates, and a lack of inventory. 

In Q4 of 2025, the median house sales price in San Francisco soared 12% year over year (from Q4 2024) and reached highs not seen since Q2 2022. Looking at the annual numbers, median house prices rose 4.6% annually from 2024. Condominiums are continuing to rise in value and rose 4.5% from Q3 to Q4 in 2025 and 1.3% annually. 

In the fall, luxury home sales accelerated rapidly and we ended the year with 23% more homes over $5M sold as compared to 2024. We had slightly lower inventory overall in 2025 vs. 2024, and we are hopeful that with the market turning in favor of sellers this will encourage more people to put their homes on the market to meet the rising buyer demand. Absorption, which is a good measure of buyer demand vs. supply, is very high and peaked this past fall (October 2025). 

Average days on market remained essentially flat year-over-year for houses (at 59 days) and are ticking down to 28 days for condos. The year ended with an average overbidding percentage of 113% for single-family homes and 100% (asking price) for condominiums, but of course that varies wildly across the city depending on the neighborhood. 

San Francisco is the only Bay Area county that this year had a decline in the number of price reductions, a telling sign for the market. More details can be found at this link to explore various neighborhoods across the city and get a sense of the average price per square foot for both condos and single family houses: https://www.bayareamarketreports.com/trend/san-francisco-neighborhood-map For example, in Pacific Heights this year, the average price per square foot for single-family houses was $1591/sq. ft., eclipsed by Presidio Heights which was $1772/sq. ft.! In Noe Valley, the median price per square foot value was at $1371/sq. ft., and the Inner Richmond (south of Lake Street) was $1181/sq. ft. District 7, which encompasses Pacific and Presidio Heights, Cow Hollow, and the Marina, hit new highs for median condo and house prices in 2025. 

In January and February we are launching a number of exciting listings: a two-bedroom condominium in Lower Haight (715 Page), a large, modern single-family home across from Alamo Square Park (1164 Fulton), a multi-unit investment property next door (1176-78 Fulton), an adorable home in Miraloma Park (575 Teresita), a classic Pacific Heights house that is tenant-occupied (1980 Jackson), a fabulously renovated property in Presidio Heights (320 Walnut), and a sweet one-bedroom condo in North Beach (935 Filbert #3). Visit www.teamhatvany.com to learn more. 

Please get in touch for more details on any of the above or to chat about the market. Now is the time to sell if you have been on the fence, and it’s more important now than ever to have a trusted buyer’s agent who can help you navigate a challenging market with limited inventory.

Please click here to view the Market Report Flipbook

Best,
Team Hatvany Kitchen
Nina, Natalie, Vanessa & Paul