California Luxury Home Values Post Small Gains

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.

**Taken from the California Association of Realtors Bulletin, dated August 17th, 2006.