Condo prices have been falling throughout the Bay Area.  It is true that things are neighborhood specific in San Francisco, but this chart below is from the April 10th, 2011 Chronicle with fractions rounded and source being DataQuick Information Services. It definitely shows that as of the end of last year across the Bay Area prices are down 42.9% overall since their 2007 Peak.  Note San Francisco has had the least drop but is still 14.5% lower than our 2007 peak.

County                    2006            2007            2008          2009         2010           Peak            2010 v. Peak
Alameda                $462.5K      $460K         $320K        $250K       $248.3K    $462.5K      -46.3%
Contra Costa        $420K         $429K         $280K        $185K       $180K        $429K         -58.0%
Marin                      $548.8K      $570K         $402K        $317.5K    $350K        $570K        -38.6%
Napa                      $462K         $440K         $400K        $242K        $236.5K    $462K         -48.8%
Santa Clara          $499K         $520K          $417.5K    $300K        $328.8K    $520K         -36.8%
San Francisco     $715K         $760K          $749K        $640K        $650K       $760K         -14.5%
San Mateo            $535K         $550K          $450K        $393K        $375K       $550K         -31.8%
Solano                  $300K         $294K          $125K        $75K           $78K         $300K         -74.0%
Sonoma               $380K         $359.5K       $220K        $174.5K     $175K       $380K         -53.9%

BAY AREA            $490K        $508K            $375K       $275K        $290K        $508K         -42.9%

When deciding between getting an FHA approved loan or a conventional loan there are many factors that go into this decision.  The primary ones in the past have been

• Down payment.  The FHA loans only require 3.5% down vs conventional loans which typically require between 10% to 20% down depending on rate.  Also FHA allows for down payment gifted from a family member, a governmental agency, or a nonprofit organization.
• Mortgage Insurance Premium.  FHA loans require a mortgage insurance and thus FHA borrowers are required to pay a mortgage insurance premium.  Many conventional loans do not require a mortgage insurance premium if a large enough down payment is made.
  
• Credit Qualification Criteria.  It is easier to qualify for a FHA loan than a conventional loan.
• Total Loan Amount Limits.  The loan limits for a FHA loan are typically less than those of a conventional loan.

One of the other advantages that has often been overlooked is that FHA loans are assumable and conventional loans are not.  In the future this is going to have a significant impact on property owners.  Everyone is expecting interest rates at some point to start increasing within the next year or so.  When this happens, owners who have FHA loans will have an advantage in selling their homes v. conventional loan holders as conventional loans typically are not assumable.  The new buyers from an FHA loan seller will be able to assume the loan at the lower interest rate reducing their payments.  This will greatly expand the buyer pool for sellers with FHA loans as more buyers will be able to afford their monthly payments.

A new website SFO RELO has recently come on line.  They provide some excellent information about San Francisco schools.  Their site provides School Accountability Report Cards (SARC) on various elementary, middle and high schools.  These cards provide important information such as the enrollment size of classes, demographics, facility conditions, expenditures per student, support staff, and standardized test performances.

So if you have children and are researching schools I would definitely check out the website www.SFORELO.com

The FHA is increasing the amounts required for Mortgage Insurance Premium from .9% to 1.15% as of April 18th on 15 yr and 30yr loans.  So if you want to purchase a home and not pay the additional increased costs you will want to have your purchase agreement ratified by April 18th 2011.