San Francisco Bay Area home prices expected to rise 3–7% in 2026, supported by persistent supply shortages and steady demand.
Inventory projected to remain tight, keeping competition elevated and preventing meaningful price declines.
Mortgage rates likely stabilizing near 6.0–6.5% may moderate, but not reverse, price growth.
Price appreciation forecast to slow to 1–4% in 2027 as affordability constraints limit further acceleration.