Prices rose 3 percent from a year earlier, the fastest annual growth in 10 months. The strong luxury market is another factor: Luxury home prices are rising three times faster than non-luxury prices. While San Francisco prices fell month-over-month, they’re soaring on a year-over-year basis, largely because of the AI boom. San Francisco home prices rose 10.8 percent year-over-year, the biggest increase in the country. Prices are falling in those places because there are significantly more sellers than buyers, with sellers pricing lower to attract house hunters and, in some cases, buyers negotiating prices down.