Well, I generally rant against national media, but while local media generally don't know what they're talking about either when it comes to Real Estate, I finally read an article where the author actually did some research.
Carol Lloyd of the San Francisco Chronicle wrote an article two Sunday's ago which you can read here. She analyzed data from two sources to come to the conclusion I've been writing about for a while... that the "working class" neighborhoods in San Francisco are suffering, whereas the areas of "storied affluence" are up significantly in the last year.
She also sites Atherton, a gated community down south on the Bay Area's Peninsula, where the writer says people are "continuing to snatch up mansions like fresh cream puffs." If you can scroll to about minute 45 in this nearly 47 minute video you'll hear a Peninsula agent echo the same thing.
The bottom line reason cited in the article for the tale of "two cities" is that "people in Pacific Heights never had to lie for a loan". Although another agent rightly states that there are many highly paid technology professionals would rather live in urban areas with "walkable neighborhoods". In San Francisco there are a number of little communities that have fared quite well over the past year with central business district streets that locals love to live near. Examples include Fillmore Street in Lower Pac Heights, Polk Street in Russian Hill, 24th St in Noe Valley... and even Clement in the Richmond.
There are quite a few others... clean, safe blocks in affluent areas with coffee shops and restaurants, and the market is up in 2007, and from early "feel" it looks like they'll be up again in 2008.