I agree with Scott and Sally that no one can predict the market. I would recommend researching statistics and drawing your own conclusions. One critical thing when reviewing statistics is to consider the area. Often news reports and financial magazines will say "San Francisco" when they actually mean the Bay Area or the San Francisco Metropolitan Statistical Area, which is very different from just the city proper. For general stats you can visit http://dqnews.com/, and for specific neighborhood reports I provide real time statistics at http://www.sfcondosales.com/condocount.
Scott is correct. With the economy in a downswing and the subprime debacle still front and center, no one can correctly predict what will happen in the market place. Data Quick showed San Francisco with a 4-5% appreciation from 1/07 to 1/08 with 15% fewer properties selling. The latest in the Chronicle shows from February 2007 to February 2008 an average appreciation of 1% with 18% fewer properties selling.
Real estate is cyclical and there have always been ups and downs. If you own real estate, hold on to it if you can. I am confident the market will get better! Sorry but I cannot predict when.
For market stats by district (SoMa/South Beach is District 9) please visit http://stats.sfcondomap.com