Luxury home values increased in San Francisco and Los Angeles, and remain largely unchanged in San Diego in the fourth 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 Dec. 31, 2012, the Index indicated the following:
- San Francisco Bay Area values rose 8.4% from the fourth quarter of 2011. The average luxury home in San Francisco is $2.73 million.
- Los Angeles area values rose 4.4% from the fourth quarter a year ago. The average luxury home in Los Angeles is $2.06 million.
- San Diego area values decreased 1.4% year-over-year. The average luxury home in San Diego is $1.64 million.
“Luxury home prices rose strongly in the San Francisco Bay Area and Los Angeles this past year,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “Growing demand from buyers, low mortgage rates and a lack of inventory continued to put upward pressure on values. Multiple offers are common in many high-end neighborhoods as buyers compete for a small number of attractive properties.”
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 fourth consecutive quarter of healthy gains on a year-over-year basis. In San Francisco, Mary Lou Castellanos of Sotheby’s International Realty said buyers had limited choices in the fourth quarter. “There is no inventory on the market, particularly for homes priced between $3 million and $5 million. A lot of money is pouring in from Asia and Silicon Valley. Prices are back to where they were at the beginning of 2008.”