San Francisco Pending Home Sales Increase 58 Percent Year over Year

http://www.businesswire.com/news/home/20091116006856/en

SAN FRANCISCO--(Business Wire)--
Pending home sales in San Francisco increased 30 percent month over month in
October and 58 percent year over year, according to the latest Market Focus
report issued jointly by Rosen Consulting Group and the San Francisco
Association of REALTORS. The report indicates that the sharp rise in the number
of homes under contract should lead to strong sales activity going forward.

The improvement in home sales activity in the city observed during the last six
months and the recent jump in pending sales has reduced the inventory of
single-family homes for sale to 2.4 months of supply, compared to 4.9 months of
supply in October of last year.

The months of supply of housing is defined as the ratio between the number of
homes for sale on the last day of the month, divided by the number of homes that
went into contract during the same month. A low months of supply number, such as
exists now, is a sign of a tight housing market and usually signals rising
prices ahead.

The Market Focus report also indicates that the median single-family home sales
price increased 3.4 percent month-to-month to $760,000 in October, marking the
second consecutive month of increasing prices.

Ilse Cordoni, president of the San Francisco Association of REALTORS, notes that
the stabilization of home prices, particularly at the lower end of the housing
market, has caused the higher end of the market to gain traction. "During the
last two quarters, we have seen a more evenly distributed pattern of home sales
activity throughout the city and in all price ranges," she says.

The demand for condominium units also is showing signs of improvement. The Rosen
Consulting Group reports that, "Pending condominium sales nearly doubled in the
city from October of last year, with 288 units under contract in October 2009."

But the Rosen Consulting Group observes that the San Francisco housing market is
facing some headwinds: "The concentration of job losses in white-collar
employment sectors during the current down-cycle and the disproportionate impact
that this has had on the San Francisco economy increases the likelihood of
pushing more distressed homeowners into foreclosure."

But Cordoni says that despite high unemployment levels and continuing job cuts,
the extension, as well as the expansion, of temporary federal housing programs
should continue to promote housing demand in San Francisco. "As a result of the
continued government intervention in the housing market," she says, "traditional
supply/demand dynamics have shifted. Tax credits and mortgage rate subsidization
will continue to moderate the negative effects of high unemployment levels and
job market uncertainty."

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 Rosen Consulting Group

301 Grove Street
1995 University Ave., Ste. 550

San Francisco, CA 94102
Berkeley, CA 94707

415-431-8500 x132
510-549-4510

www.sfrealtors.com
www.rosenconsulting.com

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San Francisco Association of REALTORS
Jim Fabris, 415-431-8500 x132

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