California luxury home values up in second quarter
According to the First Republic Prestige Home Index issued by First Republic Bank, luxury home values in certain niche California markets experienced strong growth in the second quarter.
In the San Francisco Bay Area, values were up 10.9% year-over-year, as well as 5.0% since the first quarter. Los Angeles homes rose 6.1% since 2012's second quarter, as well as 3.3% since last quarter. In the San Diego region, values were up 8.0% on a year-ago basis and 4.9% since last quarter.
“This was one of the best quarters in recent history for California luxury home prices in First Republic’s urban, coastal markets,” said Katherine August-deWilde, president and COO of First Republic Bank. “Limited inventory and growing demand from both U.S. and international buyers are driving the market. Many properties generated multiple offers. It was a very strong quarter.”
The average luxury home is valued at $2.9 million, $2.1 million and $1.7 million in San Francisco, Los Angeles and San Diego, respectively.