California luxury home values post small gains
This article was posted yesterday from the California Association of Realtors. They, in turn, quote First Republic Bank's "Prestige Home Index" report. Here's what they have to say:===================================
Luxury home prices in Los Angeles, San Diego, and San Francisco continued to increase during the second quarter of 2006 but at a slower pace, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. In Southern California, sales of homes valued $10 million or higher have remained strong, while sales in the lower- to mid-tiers of the luxury home market have slowed. In San Francisco, the entire market for high-end homes has cooled.
According to the report, the value of luxury homes in Los Angeles edged up 3 percent from first quarter and 12.8 percent compared with the second quarter of 2005. The average value of a high-end home in Los Angeles now stands at a record $2.36 million. The prices of luxury homes in San Diego and San Francisco also recorded gains during second quarter, rising 6.4 percent and 4.8 percent, respectively, from a year ago. The average luxury home in San Diego is $2.14 million, while the average luxury home in San Francisco is valued at $2.93 million.
- C.A.R. Newsline
Here is the link to the latest "Prestige Home Index" report from First Republic Bank which changes periodically. Read the August 16th report below:
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Luxury Home Values Rise in Second Quarter of 2006 Modest Gains in Los Angeles, San Diego and San Francisco
August 16, 2006
SAN FRANCISCO — Luxury home values posted small gains in Los Angeles, San Diego and San Francisco in the second quarter of 2006, according to the First Republic Prestige Home Index™ by First Republic Bank (NYSE: FRC), a leading provider of wealth management and private banking services.The Index, which has tracked luxury homes since 1985, found:
- San Francisco Bay Area values increased 0.3% from the first quarter of 2006 to the second quarter of 2006 and gained 4.8% from a year ago. The average luxury home in San Francisco is now a record $2.93 million, up $134,978 from a year ago.
"Over the past year, the luxury home market in California has transitioned to a more normal, stable market in which properties sell at a more measured and less frenetic pace," said Katherine August-deWilde, Chief Operating Officer of First Republic Bank. "Luxury home values continue to increase, but at a much slower rate due to rising inventory and interest rates. Homes are being priced more aggressively to sell because buyers have more options."
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 are accessible at www.firstrepublic.com.
In San Francisco, values were up 0.3% compared to the first quarter—the slowest rate of appreciation since the third quarter of 2004. Over the past two years, quarterly increases in the San Francisco Bay Area have been no greater than 6%.
Agents in the San Francisco Bay Area said that well-priced homes in great locations are selling very well, but the market overall has weakened over the past year.
"The market between $2 million and $6 million is really strong because of continuing demand," said Caroline Kahn Werboff of Hill & Co. in San Francisco. "If the house is priced fairly, you're seeing multiple offers at or a little over the asking price. Interest rates would have to get up to double digits to make a significant difference." In the high end of the market, Kahn Werboff said there have been some price reductions. She said some buyers are reluctant because they believe prices will decline.
David Gowan of TRI Coldwell Banker said the market is more balanced, although slower than it has been in recent years. "Instead of selling in two weeks, properties are selling in two months, just like they would in a normal market. What we've seen the past six years is unusual." Gowan said buyers are generally making offers slightly under the asking price.
In San Francisco's East Bay, the market is slowing. "Over $2 million, our inventory is up and buyers aren't in a terrible hurry," said Tara Rochlin of Village Associates in Orinda. "We're seeing more sellers willing to negotiate and lower their prices. We're headed toward a more balanced market, which is better for everyone over the long term."
- First Republic Bank's "Prestige Home Index" Report
posted by SFResidence.com @ 12:53 PM
1 Comments:
In case you haven't seen this already, Google Answers has posted a list of the top real estate agents in the US, and the rest of the world...mostly luxury properties:
http://answers.google.com/answers/threadview?id=162278
Who are the world's top real estate brokers?
I thought folks here might like to see it.
David
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