San Francisco Housing Market Resumes Healthy Pace


Contact: Jim Fabris

San Francisco Association of


301 Grove Street

San Francisco, CA 94102

415-431-8500 x 132

San Francisco Housing Market Resumes Healthy Pace

SAN FRANCISCO, CA, February 16, 2011 – Home sales activity in San Francisco is returning to a

healthy pace, according to the latest Market Focus report issued jointly by the Rosen Consulting

Group and the San Francisco Association of REALTORS®. Driven partially by all-cash buyers and

improved affordability, the robust increase in pending sales activity seen in recent months

indicates that an increase in property sales is on the horizon.

By some estimates, all-cash buyers represent 20-30 percent of homebuyers in the San Francisco

market, resulting from more stringent mortgage lending practices, as well as a growing demand

for investment opportunities as yields for many common investments remain unattractive.

Single-Family Sales Rise by 20.7 Percent Year-Over-Year in January 2011

Completed single-family home sales in San Francisco rebounded during the month of January

by 20.7 percent. Year-over-year single-family home sales rose at a noticeably accelerated pace

in Districts 2 (Central Sunset, Golden Gate Heights, Inner Parkside, Inner Sunset, Outer Parkside,

Outer Sunset, and Parkside)—72.2 percent and District 10 (Bayview, Bayview Heights,

Candlestick Point, Crocker Amazon, Excelsior, Hunters Point, Little Hollywood, Mission Terrace,

Outer Mission, Portola, Silver Terrace, and Visitacion Valley)—46.7 percent where the median

sales prices in January 2011 were $619,000 and $414,250, respectively. Pending single-family

home sales also increased by an impressive 37.5 percent year-over-year in January 2010,

leading the Rosen Consulting Group to believe that the upward trend observed in property

sales should continue at least through the early part of 2011.

At the current pending sales rate, this equates to a 2.9 months of supply inventory. By price

segment, the months of supply inventory for homes priced less than $700,000 remains narrow

at 2.3 months, while homes within the $700,000 to $1.2 million price range had 3.6 months and

the supply of homes priced greater than $1.2 million edged upwards slightly from January 2010

to 4.6 months.

Pending Condominium Sales Increased by 25 Percent Year-Over-Year

The number of condominium sales in January 2011 remained unchanged in comparison to

January 2010, with 119 sales completed during the month. In large part, a result of the increase

in the number of condominium sales in the higher-priced segments of the market, the median

sales price increased by 7.3 percent year-over-year to $665,000 in January 2011. As for-sale

inventory levels dropped by 1.3 percent to 753 units for sale, and as pending sales activity

jumped by 24.8 percent to 186 units, the months of supply inventory contracted to 4.0 from 5.1

months in January 2010. While the months of supply inventory for condominiums priced

greater than $900,000 increased to 6.6 months, the inventory for more moderately-priced

condominiums units tightened to 2.9 months in the $500,000 to $900,000 segments and 2.5

months for condominiums priced less than $500,000.

Despite the continued volatility in housing market statistics, the elevated housing affordability

rate makes today an excellent time to buy for a qualified, long-term homebuyer. As job growth

accelerates and credit availability increases through 2011, demand will respond and drive a

continued tightening in market conditions, which should result in a more robust recovery

during the coming year.


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

Rosen Consulting Group

1995 University Avenue, Suite 550

Berkeley, CA 94707