SAN FRANCISCO-Luxury home values increased in San Francisco, Los Angeles and San Diego in the fourth quarter of 2013 compared to a year ago, according to the First Republic Prestige Home Index by First Republic Bank.
Katherine August-deWilde, president and COO of First Republic Bank, says that "Market conditions in California's luxury communities continue to be very strong. Limited inventory, robust demand and low interest rates are driving prices higher."
In San Francisco, the market was very active. "Prices continue to rise because there is so little inventory and so much demand," says Mary Lou Castellanos of Sotheby's International in San Francisco. "There are a lot of people who want to buy. The homes that do come to market generate multiple offers and offers over the asking."
The market in Silicon Valley was even stronger. "From Palo Alto to Atherton, we are seeing offers 20% to 40% over the asking price," says Pat Kalish of Alain Pinel Real Estate in Palo Alto. "It's tech money as well as foreign buyers. From all indications, prices will keep increasing because the inventory is so low. If you're a homeowner, this is one of the best times ever to sell."
In Marin County, the market improved in the fourth quarter. "Going into the end of the year, homes $4 million and above finally picked up," says Pat Montag of Sotheby's International Realty in Mill Valley. "Prices are getting close to the peak of the market in 2007. We have very little inventory and that's constraining the market."
In the fourth quarter of 2013, the Index indicated the following:
* San Francisco Bay Area values climbed 12.4% from the fourth quarter of 2012 and 1.8% from the third quarter of 2013. The average luxury home in San Francisco is $3.1 million.
* Los Angeles area values rose 13.7% from the fourth quarter a year ago and 1.3% from the third quarter of 2013. The average luxury home in Los Angeles is $2.3 million.
* San Diego area values gained 16.6% year-over-year and 1.3% from the third quarter of 2013. *The average luxury home in San Diego is almost $1.9 million.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
