San Francisco Housing Market Rebounds

The housing market is tightening up in San Francisco, according to the most recent Market Focus Report released jointly by the ""Rosen Consulting Group"":http://www.rosenconsulting.com/ and the ""San Francisco Association of Realtors."":http://www.sfrealtors.com/pageserver.cgi?tpl=home.tpl&name=home

[IMAGE]

The report found 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, said the scarcity of housing units for sale has driven up the median sale price of single-family homes. He

[COLUMN_BREAK]

said the median single-family home sales price in March increased to $791,000, up 19.4 percent from a year ago.

In a welcomed development for a city known for the high value of its real estate, the report also indicated that the sale of luxury property has gained traction in recent months. The Rosen Consulting Group attributes this improvement to a more positive sentiment among high-end buyers.

This positive trend was also seen in the city's condo market, with the median sales price rising to $670,000, a 4.9 percent jump from March 2009. Stimulated by the availability of Federal Housing Administration financing, tax credits, and attractive pricing/concessions in comparison to recent periods, completed condo sales reached 206 units in March, surging 76 percent from the previous year.

The report voiced an optimistic note about housing sales activity in the near-term future, 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 bolster home price appreciation. In addition, the report said ""California's $200 million homebuyer tax credit program"":http://dsnews.comarticles/gov-schwarzenegger-extends-10000-homebuyer-tax-credit-in-california-2010-03-26, replacing the expiring federal tax credit, should continue to incentivize buying activity.