Luxury home values rose sharply in San Francisco, fell slightly in Los Angeles and increased modestly in San Diego in the first quarter of 2012 compared to the fourth quarter of 2011, according to the First Republic Prestige Home Index™ by First Republic Bank, a leading private bank and wealth management company.
In the quarter that ended March 31, 2012, the Index indicated the following:
- Los Angeles area values dropped 0.7% from the fourth quarter of 2011 and declined 0.1% from the first quarter a year ago. The average luxury home in Los Angeles is now $1.96 million.
- San Diego area values increased 0.4% from the fourth quarter and rose 1.4% year-over-year. The average luxury home in San Diego is now $1.65 million.
- San Francisco Bay Area values climbed 2.9% from the fourth quarter and were up 4.2% from a year ago. The average luxury home in San Francisco is now $2.59 million.
“Luxury home prices were up significantly in the San Francisco Bay Area due to the strength of the technology sector, high demand and low inventory,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “In Southern California, price movement was more modest. San Diego values increased modestly in the first quarter, while Los Angeles luxury values were down slightly. Low interest rates, increasing rents and higher housing affordability are resulting in increased market activity throughout California.”
First Republic Bank produces the Prestige Home Index each quarter with Fiserv CSW Inc., a leading provider of automated property valuation services and home price metrics to U.S. financial institutions. Historical results of the Index, which has tracked luxury homes since 1985, are accessible at www.firstrepublic.com. First Republic Bank is an active lender in the luxury home market for primary residences and vacation homes.Los Angeles Area Values In Los Angeles, values were down 0.7% in the first quarter compared to a decline of 1.8% in the fourth quarter of 2011.