The new San Francisco real estate market is shaping up to be a more measured version of the market seen last year. As an example, properties are taking about a week longer to sell than before, and the rate of appreciation has gone from double to single digit rates. Furthermore, the Months Supply of Inventory (MSI) has expanded to almost two months, versus the one month level seen last year.

There is, however, continued upward pressure on pricing. The most recent median sales price grew 8% year-over-year. Additionally, April's citywide median sales price is 15% higher, when compared to January's median. Strong economic fundamentals continue to propel property values upward. The City's unemployment rate is hovering around 3%, and the office vacancy rate measures around 5%, both at near record lows. With the prospect of oil prices stabilizing, the national economy appears to be on better ground. Reuters recently reported on the markets, stating that "First-quarter earnings for S&P 500 companies are mostly beating analysts' expectations".