Luxury home values hit all-time highs
SIGNONSANDIEGO NEWS SERVICES
9:45 a.m. November 28, 2005
SAN DIEGO – Luxury home values rose to all-time highs in San Diego, San Francisco and Los Angeles in the third quarter of 2005, a financial institution reported today.
But while Los Angeles remains strong, there are signs of slowing in San Diego and San Francisco, according to the First Republic Prestige Home Index, compiled by San Francisco-based First Republic Bank.
"Luxury home prices in California set records again in the third quarter of 2005, although there are clear signs of a slowing trend," said First Republic Bank Chief Operating Officer Katherine August-deWilde.
"Throughout California, luxury home values and activity are expected to moderate as the market takes a breather after a prolonged period of significant appreciation."
In San Diego, values increased 2.9 percent from the second quarter of 2005 to the third quarter of 2005 and were up 11.6 percent from the third quarter a year ago, according to the First Republic index.
That increase was the smallest gain in the past seven quarters, but despite the deceleration, luxury homes in San Diego have nearly doubled in the past five years, First Republic reported.
The average luxury home in San Diego is now $2.07 million, up $215,000 from a year ago, according to First Republic, which reported that values have posted seven consecutive quarters of double-digit, year-over-year gains.
Los Angeles values jumped 8.6 percent from the second quarter of 2005 to the third quarter of 2005 and 17 percent from the third quarter a year ago, according to First Republic.
It said the average luxury home in Los Angeles is now a record $2.28 million, up $331,000 from a year ago. Values have posted 11 straight quarters of double-digit, year-over-year gains, according to a First Republic statement.
Luxury home values in Los Angeles continued to appreciate faster than anywhere else in the state on the strength of the entertainment industry and the overall diversity of the region's economy, according to First Republic.
In Orange County, the market is slower than in Los Angeles, but while prices are leveling, they haven't gone down, and if they do drop, the decline will be modest, according to real estate executives quoted in the First Republic statement.
First Republic reported that San Francisco Bay Area values rose 1.8 percent from the second quarter of 2005 to the third quarter of 2005 and gained 12.9 percent from a year ago.
San Francisco luxury home values remain the highest in the state at a record $2.85 million, up $327,000 from the third quarter of 2004, according to First Republic. Values have posted six quarters in a row of double-digit, year-over-year gains, it said.
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