Jan,
Up. The only downward pressure that area will experience wi come from sellers that have to sell and fewer buyers that can qualify for loans.
At the prices and desirability of Cow Hollow that is a very small segment of the market so not much pressure.
Any seller that can has to move and can rent the property until the credit market is stabilized will hold till then. Rents are going up in most areas of SF and the north side is always a strong rental area.

So UP!

Historically, the late summer is when inventory peaks. From mid September to January is when the market starts to loose inventory. Buyers do best in the late summer and Sellers do best (percentage of asking price) between Thanksgiving and New Years. Cow Hollow will follow this trend - although it is a very desirable area - as is the Marina - that get's relatively little turnover throughout the year. I would say prices will firm up over the next 6 months there due to inventory decrease. As for 2008 - it will then become a stronger market due to strong job growth.