DataQuick's November homes sales report for the Bay Area and San Francisco came out. You can read it here.
Once again the Bay Area's prices were down (1.4%), while San Francisco was up (0.7%) from November of last year. The quote from the report that jumps out at me is from DataQuick President Marshall Prentice who said "As prices stabilize and sellers get real about asking prices, a lot of the fence-sitters will jump in. We could see a moderate increase in sales counts".
In fact interest rates are incredibly low, and given that his comments are about the Bay Area in general, San Francisco is likely to see an even bigger boost in sales counts and price appreciation. In this "slow" market San Francisco has held up and even increased. As "fence-sitters" jump in, San Francisco may well see a decent run up in prices.
If I were a buyer I'd try to get in before March or April when sales heat up. And if I were a Seller I'd prepare my house for a March or April listing. Sellers - click on the "Free Home Value Service" link for a price evaluation report. Buyers, search for homes at either the "MLS Property Search" service, or "Auto Email Home Search" or at "CleanOffer".