Luxury Home Values Stable in Fourth Quarter of 2011 – Santa Monica Real Estate
I just read a fairly positive article on WSJ’s Market Watch. Luxury home values remained relatively stable in Los Angeles in the fourth quarter of 2012 compared to the third quarter, according to the First Republic Prestige Home Index(TM) by First Republic Bank.
In the quarter ended Dec. 31, 2011, the Index indicated the following:
— Los Angeles area values declined 1.8% from the third quarter of 2011 and dipped 0.1% from the fourth quarter a year ago. The average luxury home in Los Angeles is now $1.97 million.
“Luxury home prices in urban, costal markets in California were mostly stable in the fourth quarter,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “Low rates, good values and positive economic news have led to increasing interest in home buying in 2012. San Francisco and Silicon Valley, in particular, are likely to benefit from the strength of the technology and social media sectors.”
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, which has tracked luxury homes since 1985, are accessible at www.firstrepublic.com . First Republic Bank is an active lender in the luxury home market for primary residences and vacation homes.
Los Angeles Area Values
In Los Angeles, values have remained in a narrow range over the past two years. In the first quarter of 2010, the average price of a luxury home in Los Angeles was $1.98 million. In the fourth quarter of 2012, it was $1.97 million.
Buyer activity did pick up toward the close of the fourth quarter.