"[This year] is set to become a great year for first time homebuyers to get into San Francisco real estate," said Tim Gullicksen of Zephyr Realty. "The perception among prospective buyers seems to be that our economy has hit bottom and is now on a slow crawl upward. They did not want to buy if there was going to be further downward movement in the economy and home prices."
Gullicksen points to Goldman Sachs' prediction that real gross domestic product growth over the next two years will increase 4 percent as reason for his optimism, as the country's economic growth often correlates with growth in the housing sector.
Guillicksen went on to say that prices and interest rates have "nowhere to go but down."
The Mortgage Bankers Association said interest rates dropped for the third week in a row last week and housing affordability is at an all-time high, according to National Association of Home Builders.
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