According to February's Market Focus report, issued jointly by the Rosen Consulting Group and the San Francisco Association of REALTORS, sales of residential real property in San Francisco in January continued to be dominated by more modestly priced homes. Luxury property sales lagged with sales only occurring after protracted negotiations of the purchase price and price reductions.

In January, the single-family median home sales price reached $720,000, an 18 percent increase from January 2009, the apparent trough in the median sales price during the recent down cycle.

According to John Lee, president of the San Francisco Association of REALTORS the sales at the high end of the market continued to be dominated by all cash or large down payment Transactions. The sharp decline in household net worth across all income levels and the devaluation of many passive investments as a result of the most recent recession has led to more conservative investing even among affluent households."

A total of 113 condominium sales were completed during the month of January in comparison to 78 sales in January of last year while pending sales for the month followed a similar pattern reaching 177 sale contracts signed from 98 signed the same month last year.

At the current sales rate, the months of supply inventory for single-family homes dropped to 3.5 months from 5.8 months while the months of supply inventory for condominiums show a more substantial decline during this time, dropping to 4.1 months from 9.5 months in January 2009. Rosen Consulting Group believes this to be another positive sign in the market. (With Input from Agencies)