What Will Spring Bring Us?

With the arrival of 2026, buyers and sellers are preparing for the upcoming spring real estate market. Unlike previous years, an atmosphere of renewed optimism is evident.

Between 2023 and 2025, many navigated new realities, with mortgage interest rates rising to 7% from the previous 3%, resulting in price declines and the slowest market in at least 25 years. Both buyers and sellers faced uncertainty regarding pricing and future trends.

A number of sellers delayed listing their properties, anticipating higher prices, while buyers waited for interest rates to decrease. Such behavior is typical in transitional and uncertain markets.

Nevertheless, changes in personal circumstances necessitated some property transactions. Buyers acquired homes despite elevated interest rates, recognizing opportunities in lower prices and the potential for future refinancing. Historically, rates between 6% and 7% are not exceptionally high, though recent expectations shaped by 3-4% rates are unlikely to recur soon.

The opening months of 2026 were characterized by low inventory, resulting in multiple offers and overbidding in certain cases. The market trajectory is upward, with mortgage rates now around 5.75%.

San Francisco Mayor Daniel Lurie has initiated positive changes in the City, and for the first time since the pandemic, optimism regarding San Francisco’s future is increasing. There are signs of increased property preparation for sale, indicating an active spring season ahead. Single-family homes continue to perform well. Even the previously stagnant condo and investment markets are improving, driven by a return to in-person work and rising rents.

Achieving optimal results when listing a home requires careful consideration of numerous factors. Pricing strategy and emotional appeal are integral to attaining higher sale prices. Purchasing a home is often an emotionally driven decision and may involve significant stress due to the financial commitment required.

Multiple offers reinforce buyers’ decisions, demonstrating shared interest in the property from others. Sellers should focus on preparing their property for sale to generate emotional appeal. Contemporary buyers prioritize move-in ready homes, given their busy schedules.

Cost-effective improvements can deliver substantial returns on investment. Decluttering increases the perceived size and upkeep of the house; painting and refreshing outdoor spaces improve visual appeal and refinishing hardwood floors enhances overall presentation.

Professional staging further elevates a property’s attractiveness, presenting it as a model home and distinguishing it from competing listings. As property values rise, staging costs become a smaller proportion of the final sale price, making professional staging a prudent investment.

Marketing strategies have evolved, with online presence now essential for attracting prospective buyers. High-quality photographs, virtual tours and videos significantly increase engagement. Most buyers research homes online before visiting, underscoring the importance of a strong digital first impression.

Buying or selling a property is inherently stressful, especially during periods of uncertainty. Real estate transactions will persist, and individuals will continue to buy or sell as needed. In such times, expert advice from experienced professionals is invaluable in facilitating smooth and efficient buying and selling decisions. I recommend consulting with a seasoned real estate agent, CPA and perhaps an attorney. Spring is in the air, and I anticipate an active and successful selling season.

John M. Lee is a broker with Compass specializing in the Richmond and Sunset districts. If you have any real estate questions, call him at 415-465-0505 or email johnlee@isellsf.com.