Luxury home values rose in California’s major metropolitan markets in the second quarter of 2012 compared to a year ago, 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 June 30, 2012, the Index indicated the following:
- San Francisco Bay Area values climbed 6.6% from the second quarter of 2011 and were up 2.9% from the first quarter of 2012. The average luxury home in San Francisco is now $2.67 million.
- Los Angeles area values increased 2.4% from the second quarter a year ago and jumped 4.3% from the first quarter of 2012. The average luxury home in Los Angeles is now $2.04 million.
- San Diego area values gained 2.5% year-over-year and declined 0.2% from the first quarter of 2012. The average luxury home in San Diego is now $1.65 million.
“The luxury home market continued to improve in the second quarter, with some neighborhoods experiencing strong price appreciation and accelerating interest from homebuyers,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “During the first half of 2012, buyers were motivated by a lack of supply and very low interest rates.”
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.San Francisco Bay Area Values In the Bay Area, prices appreciated 2.9% in the second quarter due to the strong economy. The 6.6% price increase compared to a year ago was the largest year-over-year gain since the first quarter of 2006.