Industry News

California luxury-home values increase in 2005

But price gains slow in fourth quarter

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Luxury-home values rose to all-time highs in Los Angeles, San Diego and San Francisco in 2005, but appreciation slowed significantly in the fourth quarter, according to the First Republic Prestige Home Index, released today. The Index, which has tracked luxury homes since 1985, found that Los Angeles values rose 0.7 percent from the third quarter of 2005 to the fourth quarter of 2005 and rose 16 percent for the year. The average luxury home in Los Angeles is now a record $2.29 million, up $316,000 from a year ago. San Diego values rose 0.7 percent from the third quarter of 2005 to the fourth quarter of 2005 and were up 13.3 percent for the year. The average luxury home in San Diego is now a record $2.09 million, up $245,000 from a year ago. San Francisco Bay Area values rose 1 percent from the third quarter of 2005 to the fourth quarter of 2005 and gained 13.2 percent for the year. The average luxury home in San Francisco is now a record $2.88 million, up $336,000 from a year ago. In...