FOR IMMEDIATE RELEASE:
Contact: Jim Fabris
San Francisco Association of
REALTORS®
301 Grove Street
San Francisco, CA 94102
415-431-8500 x 132
Healthy Rise in Pending Home Sales Points to More Robust Rebound
in San Francisco in Coming Months
SAN FRANCISCO, CA, March 15, 2011 – Pending home sales activity in San Francisco increased
8.9 percent during the month of February which should result in stronger homes sales in
coming months, according to the most recent Market Focus report issued jointly by the Rosen
Consulting Group and the San Francisco Association of REALTORS®. The current pending sales
rate equates to a 2.6 months of supply inventory. The single-family months of supply inventory
declined across price segments, with the months of supply inventory for homes priced greater
than $1.2 million showing the greatest improvement, declining to 2.2 months from 2.9 months
in February 2010.
Though stringent mortgage lending standards continue to keep potential homebuyers out of
the market, mortgage rates have reverted to the sub-5 percent range in recent weeks,
supporting higher affordability levels.
Foreclosures and short sales make up a much smaller proportion of sales in San Francisco than
other areas of the country. Despite this, in February 2011, the median sales price of a singlefamily
home declined by 7.2 percent year-over-year to $645,000. Closed sales also contracted
by 7.2 percent during this time.
Condominiums sales increased by 10.3 percent year-over-year in February 2011, while the
median price during this time declined 12.3 percent to $565,000.
The current rebound in employment growth is expected to gain momentum through the
coming year, which, when combined with elevated affordability rates and limited new
construction, should result in a more robust housing market recovery in the coming quarters,
according to the Rosen Consulting Group. Driven largely by increased hiring across the tech
industry, payroll levels in Bay Area metropolitan areas have rebounded in comparison to the
same time last year. In January 2011, on a seasonally-adjusted basis, total employment levels in
the San Jose and San Francisco metropolitan areas increased by 1.8 percent and 0.3 percent
year-over-year, respectively. During this period, the contraction in East Bay employment levels
flattened to a 0.4 percent year-over-year decline in jobs. Combined, job growth within these
two Bay Area metropolitan areas during this period resulted in the addition of approximately
13,600 jobs. As the real estate market is driven largely by job creation, this trend bodes well for
housing demand in the months to come.
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Real estate data in Market Focus is provided by Terradatum. Market Focus is written by the
Rosen Consulting Group. For additional information on the real estate market or Market Focus,
please contact:
San Francisco Association of REALTORS®
301 Grove Street
San Francisco, CA 94102
415-431-8500 x 132
www.sfrealtors.com
Rosen Consulting Group
1995 University Avenue, Suite 550
Berkeley, CA 94707
510-549-4510
www.rosenconsulting.com