Although sales of single-family, re-sale homes were down 7.5% for the year, there was a lot of momentum in the second half of the year.

Home sales increased, year-over-year, in five of the last six months of 2008. Momentum that should carry over into 2009.

Prices took a hit last year but should start bottoming out in the first half of this year.

Home sales were up 1.6% in December compared to compared to last year. Sales continue to be concentrated in the lower-priced cities such as Daly City where year-over-year sales were up 85.7%, and East Palo Alto where sales were up 380%.

The median price for homes fell 8.6% compared to November, and was off 31% year-over-year.

Inventory continues to fall, dropping 11.7% compared to last December.

The sales price to list price ratio dropped 1.4 points to 97.1%. That’s the lowest level is has been at since December 2002 and a sign that foreclosure activity continues to drive the market.

Condo sales were flat at 59 units sold. The median price for condos dropped 5% month-over-month, and was off 28.8% compared to last December.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.