FOR IMMEDIATE RELEASE:
Contact: Jim Fabris
San Francisco Association of
REALTORS®
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.
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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