Luxury home values rose in California’s major metropolitan markets in the third 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 Sept. 30, 2012, the Index indicated the following:
- San Francisco Bay Area values rose 8.1% from the third quarter of 2011 and gained 2.4% from the second quarter of 2012. The average luxury home in San Francisco is now $2.73 million.
- Los Angeles area values rose 1% from the third quarter a year ago and declined 0.8% from the second quarter of 2012. The average luxury home in Los Angeles is now $2.02 million.
- San Diego area values climbed 2.2% year-over-year and increased 0.8% from the second quarter of 2012. The average luxury home in San Diego is now $1.66 million.
“Luxury home prices were particularly strong in the San Francisco Bay Area during the third quarter of 2012,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “The Bay Area economy is healthy, inventory is limited, and multiple offers are increasingly the norm. Values in Los Angeles and San Diego are rising, and some neighborhoods are experiencing strong demand. Historic low interest rates have resulted in an elevated level of activity in luxury markets 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.San Francisco Bay Area Values The Bay Area posted its second consecutive quarter of healthy gains on a year-over-year basis. The 8.1% year-over-year increase in the third quarter of 2012 was the highest since the first quarter of 2006.