Industry News

Luxury home-price growth slows

California cities show small gains in first-quarter prices

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In another sign of a slowing housing market, luxury home values in three prominent California cities posted small gains in the first quarter, according to the First Republic Prestige Home Index by First Republic Bank. Los Angeles values rose 0.1 percent from the previous quarter and 12.4 percent from a year ago, with the average luxury home priced at a record $2.29 million, according to the index. San Diego values increased 0.9 percent from the previous quarter and 6.8 percent from a year earlier, with the average luxury home priced at a record $2.1 million. San Francisco values were up 1.6 percent from the previous quarter and 8.6 percent from the previous year, with the average luxury home priced at a record $2.92 million. "In the first quarter of 2006, the value of luxury homes rose modestly in Los Angeles, San Diego and San Francisco as mortgage interest rates continued to rise," said Katherine August-deWilde, chief operating officer of First Republic Bank. "While the rate of app...