Healthy Rise in Pending Home Sales Points to More Robust Rebound in San Francisco in Coming Months

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