Hayes Valley has changed a lot in recent years. What used to be considered a nastier part of town now flourishes, making it that much more ripe for the picking when it comes to the real estate market.

As part of a monthly market update, Zephyr Real Estate releases a one-minute video covering the various neighborhoods of San Francisco, based on information gathered from MLS (Multiple Listing Services) Listings. For their December 2012 edition, they revealed some interesting information about the current state of the real estate market in Hayes Valley: Here are some key takeaways for your convenience:

• The number of active listings was down 62% from December 2011 to December 2012. They were also down 57% from November 2012 to December 2012.
• The median listing price is just under $1.05 million dollars.
• Compared to December 2011, the number of days a unit is on the market actually rose 14% in December 2012, from 44 days to 50 days, which signifies a lower turnover rate.
• The median sale price was just over $813.5k.
• The number of units sold increased 67% year-to-year, from 2011 to 2012. It also rose 67% from from November 2012 to December 2012, as buyers have been taking advantage of more competitive interest rates.

According to Zephyr's Chief Operating Officer, Randall Kostick, the market is quite intense these days, as more people are qualifying for competitive loans. But the biggest challenge to buyers in Hayes Valley is the sheer lack of properties on the market. He notes that there aren't many homes for sale compared to the number of rental units in the neighborhood. As such, his advice to buyers is to be aggressive and patient. "It's a seller's market," Randall tells us. "Since Hayes Valley is a smaller neighborhood, there's a lack of inventory. What we mean when we say inventory is that it means that there is a lack of houses available at any given time." The current state of the Hayes Valley real estate market reflects a larger theme seen throughout California -- affordability is at an all-time low. For homeowners in Hayes Valley, Randall mentions that it's also a great time to sell your house. "The market is approaching the price highs that it had in 2005," Randall says. "It's not quite there yet, but it’s getting there." For those interested in buying, there are plenty of great realtors in the area that can help you with real estate needs. And for those interested in selling, we'll hate to see you go, but in a market like this, we understand the temptation to sell. Got any stories to share or tips for buying in Hayes Valley? Let us know in the comments.