Values of luxury homes in California up in third quarter
Nov 30 2011 9:04AM
The value of luxury homes in Los Angeles rose in the third quarter, according to the First Republic Prestige Home Index.
Values rose .07 percent from the second quarter of 2011 and increased 2.5 percent from the third quarter of last year. The source reports that values have increased in three of the last four quarters, and agents suggest that the higher end of the market seems to be the strongest. The average price of a luxury home in Los Angeles is now $2.01 million.
The source believes that home prices in multiple California communities have increased because of low inventories, low interest rates and home prices that have been declining, contributing to the housing slump while making it a buyer's market.
"This has improved the economics of investing in residential real estate," said Katherine August-deWilde, president and chief operating officer of First Republic Bank.
Other metropolitan areas including San Diego and San Francisco have also experienced an increase of home prices in the third quarter.