California Luxury Home Values Continue to Rise, San Francisco Leads in Appreciation over Los Angeles and San Diego Areas. Major metropolitan markets in California continue to enjoy increasing values in the luxury home categories as of the end of the second quarter of 2013 compared to a year ago.
With San Francisco Bay Area values climbing 10.9% year over year in 2012, the average luxury home sales price is $2.9 million USD. Los Angeles enjoyed a 6.1% increase and an average price of $2.1 million USD and San Diego captured an 8.0% increase with an average price of $1.7 million USD.
According to Katherine August-de Wilde, President and COO of First Republic Bank which monitors the luxury market and produces the Prestige Home Index quarterly, “ This was one of the best quarters in recent history for California luxury home prices in First Republic’s urban and coastal markets. 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.”
San Francisco’s 10.5% gain year-over-year represents the largest increase in value since 2005. Current gains in value are now approaching the historic highs of 2007. The strong local economy, bolstered by the presence of so many major companies like Apple, Google, Facebook, Genentech, and Oracle making their headquarters here, combines with proximity to leading universities and the numerous amenities available in the Bay Area’s cosmopolitan character and beautiful natural surroundings and weather. As a result demand and financial capability have generated a stable and growing marketplace.
A history of affinity with its neighbors across the Pacific has made the San Francisco Bay Area market a favorite place to invest among international buyers from China, Hong Kong, and Taiwan. This fact combined with the affluence resulting from the growth in the many celebrated technology ventures located here, has placed demand on quality luxury properties and estates.
Attributions: First Republic Bank Prestige Home Index. Core-Logic Case Shiller Valuation Services