SAN FRANCISCO, CA, April 15, 2010 – Sales activity in San Francisco’s housing market rebounded
during the second half of 2009 and into early 2010, resulting in a significantly tighter housing
market from a year ago, according to the most recent Market Focus report released jointly by
the Rosen Consulting Group and the San Francisco Association of REALTORS®. The report states
that completed home sales in March 2010 increased 58 percent from the same month a year
ago, absorbing much of the excess inventory in the market and intensifying competition among
buyers for desirable properties.
John Lee, president of the San Francisco Association of REALTORS®, notes that the scarcity of
housing units for sale has driven up the median sale price of single-family homes. “In March,”
he notes, “the median single-family home sale price increased by 19.4 percent, compared to a
year ago, to $791,000.”
In a welcomed development for a city known for the high value of its real estate, the report
indicates that the sale of luxury property has gained traction in recent months. The Rosen
Consulting Group attributes this development to sentiment among high-end buyers becoming
more positive.
The condominium market also gained ground during March with the median sales price rising
to $670,000, a 4.9 percent increase from the March 2009. Stimulated by the availability of FHA
financing, tax-credits, and attractive pricing/concessions in comparison to recent periods,
completed condominium sales reached 206 units in March, a 76 percent increase from the
previous year.
The report sounds an optimistic note about housing sales activity in the near-term future by
noting that the market’s return to supply and demand fundamentals as a result of a decline in
the number of foreclosures is likely to drive home price appreciation. California’s $200 million
home buying tax credit program should continue to incentivize home buying, supplanting the
expiring federal tax credit. While mortgage rates are expected to increase in coming months,
with the end of the Federal mortgage-backed security purchase program, rising interest rates
from private investments should help offset the rise in mortgage rates.
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 x132
www.sfrealtors.com
Rosen Consulting Group
1995 University Ave., Ste. 550
Berkeley, CA 94707
510-549-4510