Pending home sales activity in San Francisco increased 8.9 percent during the month of February which should result in stronger homes sales in coming months, according to the most recent Market Focus report issued jointly by the Rosen Consulting Group and the San Francisco Association of REALTORS®. The current pending sales rate equates to a 2.6 months of supply inventory. The single-family months of supply inventory declined across price segments, with the months of supply inventory for homes priced greater than $1.2 million showing the greatest improvement, declining to 2.2 months from 2.9 months in February 2010.

Though stringent mortgage lending standards continue to keep potential homebuyers out of the market, mortgage rates have reverted to the sub-5 percent range in recent weeks, supporting higher affordability levels.

Foreclosures and short sales make up a much smaller proportion of sales in San Francisco than other areas of the country. Despite this, in February 2011, the median sales price of a single-family home declined by 7.2 percent year-over-year to $645,000. Closed sales also contracted by 7.2 percent during this time.

Condominiums sales increased by 10.3 percent year-over-year in February 2011. The median price during this time declined 12.3 percent to $565,000.

The current rebound in employment growth is expected to gain momentum through the coming year, which, when combined with elevated affordability rates and limited new construction, should result in a more robust housing market recovery in the coming quarters, according to the Rosen Consulting Group. Driven largely by increased hiring across the tech industry, payroll levels in Bay Area metropolitan areas have rebounded in comparison to the same time last year. In January 2011, on a seasonally-adjusted basis, total employment levels in the San Jose and San Francisco metropolitan areas increased by 1.8 percent and 0.3 percent year-over-year, respectively. During this period, the contraction in East Bay employment levels flattened to a 0.4 percent year-over-year decline in jobs. Combined, job growth within these two Bay Area metropolitan areas during this period resulted in the addition of approximately 13,600 jobs. As the real estate market is driven largely by job creation, this trend bodes well for housing demand in the months to come.

Noe Valley is located in the heart of San Francisco. It was originally part of a land grant owned by the last Mexican mayor of Yerba Buena, or present day San Francisco, Jose de Jesus Noe. Largely developed at the turn of the last century and after the 1906 earthquake, the streets are lined with classic examples of Victorian and Edwardian architecture.

Noe Valley is surrounded by hills that give it a feeling of seclusion from the rest of the city. This, along with the residential nature of the neighborhood, attracts many young professionals and families. Though open for debate, the neighborhood borders are usually considered to be 22nd Street and Randall Street to the north and south respectively. The east and west borders are Dolores Street and Grand View Avenue.

The main business areas of the neighborhood are 24th street and Church Street. Noe valley is a very shopper-friendly zone and the number of bistros, coffee shops and bookstores contribute to the pleasant atmosphere. There are also a number of chic clothing stores and gourmet restaurants in the area. We recommend the farmer’s market held every Saturday.

There are too many good restaurants to cover them all in this post, and there are plenty of sites that serve that purpose. Two that we particularly recommend:

Firefly (www.firefly.com) is located at 4288 24th Street and offers Cosmopolitan California cuisine.

Le Zinc (www.lezinc.com)  is located at 4063 24th Street and recreates a little bit of Paris café society in the heart of San Francisco.

Noe Valley boasts a recreation area called Noe Courts Park which has something for everyone. Older kids and adults make good use of the tennis and basketball courts (Noe Courts) while the play area for younger children offers a slide, swings, climbing structure and a toddler sized tire-swing. If a dog is part of your family there is a generous dog run with hill that is fenced off from the rest of the park so your dogs can run and play to their hearts content. The park is located at 24th and Douglass and if you’re using public transportation, it’s the Muni 48 bus.

Noe Valley has much to offer and is an excellent location for enjoying city life while retaining the quiet feel of a family neighborhood.
Remember, if we can help in any way, please give us a call.

Lance and Dan