Luxury home prices drop

Luxury home prices fell in the state’s three biggest cities during the fourth quarter, with San Diego leading the way with a 2.2 percent drop in value compared to the previous quarter, according to a report out Tuesday.

San Diego, often cited as a bellwether in the California real estate market, saw luxury homes lose 8.3 percent in value over the past year and 2.2 percent since the third quarter — down to an average of $1.93 million.

Since the third quarter of 2007, luxury home prices in San Diego have fallen almost 10 percent, and homes sold in the fourth-quarter of 2008 were roughly at first-quarter 2005 prices, according to the index. Sales have been slow in upscale markets such as La Jolla.

“People are looking, but they’re just not buying. Even the oceanfront property is sitting,” said Pam Reed of Willis Allen Real Estate in La Jolla.

In San Francisco, luxury home values decreased 3.1 percent for the year and 1.8 percent since the third quarter, with the average price of a luxury home at $2.93 million, according to the index.

In Los Angeles, luxury home values declined 3.7 percent over the past year and 0.7 percent over the quarter ended Dec. 31, 2008, according to First
Republic Bank’s Prestige Home Index.

The average luxury home in Los Angeles is priced at $2.31 million. “Luxury home values in California’s urban coastal markets have so far held up better than the overall housing market, although prices are under pressure due to weaker economic conditions, employment losses and declining investment portfolios,” said Katherine August-deWilde, president and chief operating officer of San Francisco-based First Republic, which has tracked luxury home prices since 1985.

Luxury home prices in Los Angeles have been softening since since the third quarter of 2007, declining nearly 5 percent since then. “There is significant downward pressure from $2 million to $20 million, but there are buying opportunities,” said John Iglar of Teles Properties in Beverly Hills.

Related posts:

  1. Home sales increase as prices drop
  2. Gas prices drop 29.4 cents in week
  3. Gas prices fall again
  4. Gas prices down for 42nd consecutive day
  5. Gas prices fall even more

Short URL: http://www.delmartimes.net/?p=4948

Posted by Pat Sherman on Feb 24, 2009. Filed under Archives. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Archives

Facebook

Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

LA JOLLA NEWS

RSS LA JOLLA NEWS

  • Let’s Review: ‘Ether Dome’ takes the lid off story of anesthesia at La Jolla Playhouse
    The traumatic experience behind performing amputations, tumor removals and vasectomies without anesthesia is immediately intriguing when Playhouse patrons view the incredible set design by James Youmans, representing the real ether dome at Massachusetts General Hospital in 1886. Below a well-lit dome, images of these crude medical procedures are projected on […]
  • Stone fruits are in now season!
    Sadly, summer’s stone fruit growing season is way too short, but oh so sweet! Did you know: • Plum trees are grown in every continent except Antarctica. • The peach has a poisonous pit containing hydrocyanic acid. • On average, there are 44 cherries to the pound. […]
  • La Jolla’s Best Bets for events July 24
    La Jolla Music Society’s nationally recognized chamber music festival, SummerFest, kicks off 7 p.m. Wednesday, July 30 with its annual, free Concert Under the Stars at Scripps Park, La Jolla Cove. […]

RANCHO SANTA FE NEWS

RANCHO SANTA FE NEWS

RSS RANCHO SANTA FE NEWS