San Francisco's housing market saw a 17.9% drop in listings but a 12.1% rise in home sales year-over-year in July, with median prices around $1.55 million and homes selling 6% above asking. Limited inventory and high demand drive competition, especially for condos, which sold faster than last year. Buyers prioritize lifestyle and amenities despite affordability concerns, and sellers list homes quickly due to strong interest. The market remains active with no seasonal slowdown.