Home sales in San Francisco declined in August, but the median sales price increased, according to market data released by the San Francisco Association of Realtors and the Berkeley, Calif.-based Rosen Consulting Group.

In addition, home listings are up 21% from 2009, the result of banks putting more homes on the market and seller perception of a favorable shift in market conditions, the joint report said.

More condos are selling this year than last, but single-family homes still account for the majority of sales in San Francisco. The median sales price of all home sales was $730,000 in August 2010, up 4.4% from the same month in 2009. The report said 60% of all August sales were single-family houses listed for less than $700,000. By comparison, the rate of all home sales in August 2007 priced for less than $700,000 was 30%.

August home sales were down 10% year-over-year in August, but sales for this year are still outpacing 2009, boosted by a surge in condo sales. Through August 2010, 1,513 single-family home sales were completed compared to 1,350 completed sales during the first eight months of 2009, a 12.1% increase, the report said. Through the first eight months of the year, single-family home sales are up 8.5%, while condo sales are up 29.3% compared to 2009.

But real estate professionals are cautiously optimistic about the future of San Francisco’s housing market.

“There are reasons to be optimistic about the future direction of the San Francisco housing market,” said John Lee, president of the Realtor association, in a press statement. “As employment levels rise and consumer sentiment increases, home sales activity should increase and further strengthen the city’s housing market.”

It appears the 2010 sales pace will continue to slow in San Francisco. The number of single-family homes under contract slowed to 199 units, a 5% decline from August 2009. There is a 3.3-month supply of houses in San Francisco, compared to 2.8 months in August 2009, with inventory increasing across all price levels.

For homes priced less than $700,000, there is a 2.9 months supply, a 3.6 months supply for houses listed between $700,00 and $1.2 million and a 5-month supply of homes listed more than $1.2 million.

Condo sales are up for the year, but for the month of August, sales were down 12% year-over-year. The report said the expiration of the homebuyer tax credit is impacting condos more than single-family houses. In addition, the median price was down 2.3% to $649,500 year-over-year in August.

Condo inventory for sale in August were comparable to 2009 levels, 4.3 months. There is a 5.8-month supply of luxury condos priced above $900,000, while condos priced below $500,000 was at a 2.7-month supply. Condos between $500,000 and $900,000 were at a 3.7 months supply.

Write to Austin Kilgore.

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