So, this question was asked last summer but I'm sure it's still relevant to a lot of you. Hope so, anyway. My answer is YES. Deals abound in this market.
Properly priced and presented homes are selling really well in most San Francisco neighborhoods which is great for our local economy and market stability. And, great for you would-be home sellers. Just price and market your home correctly, and you'll do fine.
BUT, if you want a deal... look for the homes that are NOT priced or presented well. There are homes that have no open houses, just a lockbox, for example. Or homes where the sellers live there and have not cleaned up AT ALL. If you can see past their odd choice in couch or carpet or even lunch and imagine the potential you'll have as a home owner, you can get a deal in today's market.
Another place to get a relative deal is the condo or TIC market because this market has been most affected by the higher lending standards, aka credit tightening.
Those of you who have saved and have good credit and verifiable income should be buying now or at least within the next quarter or 2. So much of the competition is gone...for now. They will be back. San Francisco isn't going out of style anytime soon either.