Los Angeles Area Luxury Home Values Increase in 2014
Double-Digit Gains In San Francisco, Los Angeles and San Diego Year-Over-Year
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, a leading private bank and wealth management company.
In the fourth quarter of 2013, the Index indicated the following:
“Luxury home prices again posted double-digit gains on a year-over-year basis in San Francisco, Los Angeles and San Diego,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “Market conditions in California’s luxury communities continue to be very strong. Limited inventory, robust demand and low-interest rates are driving prices higher.”
First Republic Bank produces the Prestige Home Index each quarter with Core-Logic Case-Shiller, 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 atwww.firstrepublic.com. First Republic Bank is an active lender in the luxury home market for primary residences and vacation homes.Los Angeles Area Values
LOS ANGELES AREA
The region posted its second consecutive quarter of double-digit gains on a year-over-year basis.
“We had a busier-than-normal fourth quarter, despite the holidays,” said Mary Beth Woods of Coldwell Banker in Brentwood. “Because there is so little inventory, the buyers swarm when a property comes on the market. Almost 90% of the time there are multiple offers, usually over the asking price. This is one of the strongest markets I’ve seen.”
David Mossler of Tele Properties in Beverly Hills agreed. “The demand is incredible. It is much stronger than it was in 2006 at the height of the market. Homes that were selling at $10 million in 2005 and 2006 are now $20 million and $25 million. It’s astounding.”
In Orange County, values also continued to rise. “We saw a dip in sales activity in the fourth quarter, but prices increased,” said Ron Millar of HOM Sotheby’s in Newport Beach. “There are plenty of buyers and not enough inventory. Homes at $4 million are selling above their comparables from last year. The attractive properties are generating multiple offers.
About The First Republic Prestige Home Index
The First Republic Prestige Home Index™ is the first statistical model of its kind customized to measure changes in homes valued at more than $1 million in California urban markets. Some common features of luxury homes in the Index: 3,000 to 6,000 square feet, three to six bedrooms, and three to six bathrooms. San Francisco Bay Area properties include a cross-section of luxury homes in Alamo,Atherton, Belvedere, Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos, Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross, St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside. Properties inLos Angeles represent a cross-section of luxury homes in Arcadia, Beverly Hills,Calabasas, La Cañada Flintridge, Encino, Los Angeles, Malibu, Marina del Rey,North Hollywood, Pacific Palisades, Pasadena, Playa del Rey, Santa Monica,Studio City, and the West Los Angeles enclaves of Bel Air, Brentwood and Westwood. San Diego properties represent a cross-section of luxury homes in Carlsbad, Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe, San Diego and Solana Beach. In producing the Index, Core-Logic Case-Shiller draws upon its economic database and years of experience in tracking single-family home values; collects and cross-checks data from multiple sources; achieves a weighted balance of validation elements such as repeat sales, comparable sales and physical home characteristics; and combines this with First Republic’s extensive local market knowledge.
About First Republic Bank
Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service, with a solid commitment to responsiveness and action. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach,San Diego, Portland, Boston, Palm Beach, Greenwich, and New York City. First Republic offers a complete line of banking products for individuals and businesses, including deposit services, as well as residential, commercial and personal loans. For more information, visit www.firstrepublic.com.
SOURCE First Republic Bank