Dear Family and Friends,
Spring has arrived in San Francisco with a kind of clarity that feels both refreshing and energizing. The city is brighter, busier, and noticeably more alive, and that same sense of movement is carrying into the real estate market in a meaningful way.
What we typically see unfold gradually is already well underway, setting a confident tone as we move into the second quarter.
San Francisco Market Insight: A Standout Start to the Year
The first quarter of 2026 has offered a clear signal that San Francisco’s market is not only active, but gaining strength across multiple segments, particularly at the high end.
Homes priced at $5M and above have reached an all-time high for spring, marking a significant shift in momentum at the luxury level. This level of activity is notable not just for its volume, but for what it reflects: a renewed confidence among high-net-worth buyers and a willingness to move decisively in today’s market.
Several key indicators from Q1 highlight this strength:
Luxury market acceleration: Sales of $5M+ homes have surged to record levels for this time of year
Cash remains dominant: Approximately 32% of all offers are all-cash, signaling both confidence and liquidity in the buyer pool
Neighborhood appreciation: Select neighborhoods have experienced 20–30% year-over-year price growth, particularly in highly desirable residential pockets
Early spring momentum: Buyer activity began building earlier than expected, carrying strong energy into Q2
Limited inventory continues to drive competition: Well-prepared homes are commanding attention and, in many cases, multiple offers
What stands out most is the consistency across these indicators. This is not a single data point or isolated trend, but a broader pattern pointing to a market that is both resilient and forward-moving.
As we enter Q2, this momentum is continuing rather than tapering, suggesting that the spring market may be both longer and more competitive than in recent years.
A Notable Shift: The Return of Downtown
One of the most encouraging developments this year has been the continued recovery of the downtown market.
We’ve recently closed three downtown sales very quickly and all over asking which is a reflection of both improving sentiment and real opportunities emerging in this segment of the market. It’s a meaningful shift, and one that signals a broader rebalancing across the city.
Neighborhood Spotlight: Monterey Heights
Tucked along the southwestern hills of San Francisco, Monterey Heights offers a distinctly different pace and perspective from the city’s more central neighborhoods.
Known for its elegant homes, sweeping ocean views, and quiet, residential feel, Monterey Heights has long attracted buyers seeking space, privacy, and architectural character. The neighborhood is defined by its wide streets, beautifully maintained properties, and a sense of calm that feels almost removed from the city’s core, while still remaining easily connected. With increased demand for larger homes and more livable square footage, Monterey Heights has seen growing interest from buyers who value both lifestyle and long-term investment potential.
A Thought to Close
The story of 2026 so far is one of momentum, and importantly, of confidence.
From record activity in the luxury market to the re-emergence of downtown and continued strength across key neighborhoods, San Francisco is demonstrating once again its ability to evolve while maintaining its position as one of the most dynamic real estate markets in the country.
If you’re considering making a move this year, or simply want a more tailored perspective on what these trends mean for you, I’m always here as a resource.
Warmly,
Cece and Team