SAN FRANCISCO-Luxury home values in San Francisco, Los Angeles and San Diego increased in the third quarter compared with last year, according to a report from First Republic Prestige Home Index. Values climbed 10.4% in San Francisco, 14% in Los Angeles and 13.5% in San Diego.
"Luxury home prices were strong both year-over-year and for the third quarter in San Francisco, Los Angeles and San Diego," says Katherine August-deWilde, president and COO of First Republic Bank. "Luxury communities in California's urban coastal areas continue to experience limited inventory and strong demand from US and foreign buyers."
San Francisco is one of the leading housing markets in the country, and values for luxury homes continue to increase year after year. With the 10.4% increase, luxury home values now average $3 million, the highest since Q1 of 2008. The areas around San Francisco also showed increases in luxury home values. In the Menlo Park and Palo Alto, luxury housing prices average $2.1 million, and the submarket is seeing an increase in all-cash and foreign buyers.
In Los Angeles, luxury home values have increase for the past six quarters, bringing the average luxury home value to $2.3 overall and $4.5 million in Beverly Hills. These home values are the highest they have ever been, and well surpass highs from 2006. According to Myra Nourmand of Nourmand & Associates, there are a lot of buyers coming from Australia, Europe and Asia. Other luxury submarkets in the Los Angeles area also remain strong.
In Brentwood, housing values continue to rise, but the rate of appreciation has slowed while supply remains limited, according to David Offer of Berkshire Hathaway HomeServices. These submarkets have also seen a handful of luxury multifamily units come online in the last few months. Recently, Brentwood's first mid-rise complex in a decade opened its doors. Dubbed bw, the 78-story complex features a Zen rooftop garden and a glass exterior. In Beverly Hills, ETCO Homes, unveiled 432 Oakhurst, the city's first luxury condo community in several years.
Like San Francisco and Los Angeles, San Diego luxury home values have continued to rise over the past several years. Also the highest since 2008, values for a luxury home in San Diego now average $1.9 million. "Inventory was very low, which helped prices,” says Chuck Gifford of Coldwell Banker. “We also saw offers that were closer to sellers' expectations."
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Kelsi Maree Borland
