August 2026 Greater Bay Area Housing Market Update

Market Update

The housing market took a slight step back in July after a strong spring run, but the broader picture remains steady. Home prices eased from June’s twelve-month high, inventory tightened, and buyer activity continued to hold close to last year’s pace.

Nationally, the median home sale price came in at $434,100, down 1.96% from June but still 1.97% higher than a year ago. July marked the first monthly price decline of the year after five consecutive months of gains, although prices remain roughly 9.9% above January’s $395,000 low.

Affordability remains one of the biggest challenges for buyers. The 30-year mortgage rate averaged 6.43% in July before rising to 6.69% in August. The estimated monthly principal and interest payment dipped slightly to approximately $2,254 in July, but that is now essentially identical to what buyers were paying one year ago.

Home prices eased from their June high, while mortgage rates remained elevated heading into August.

New listings declined sharply from June and also fell below last year’s level.

Inventory Is Tightening Again

Approximately 1.54 million homes were available for sale nationally in July, down from June and slightly below last year.
New listings also declined, with approximately 423,700 homes coming to market. That was down 8.58% from June and 2.55% from last July.
Some of the slowdown is seasonal, but fewer listings combined with steady sales could mean buyers see fewer choices heading into fall.

Sales Are Holding Steady

Existing-home sales reached an annualized pace of approximately 4.06 million in July, down slightly from June but still above last year.
That suggests demand is holding its ground despite higher borrowing costs.
The market is not accelerating, but it also is not showing signs of a major pullback.

The Bay Area Remains Competitive

Across the Greater Bay Area, limited inventory continues to shape the market.
San Francisco posted the strongest annual single-family price growth, reaching $2.05 million, up 24.87% from last year.
San Mateo County recorded the region’s highest median at $2.123 million, up 10.57%.
Santa Clara County remained relatively stable at $1.9 million, up 1.06% year over year.