The rich get richer: It seems that in spite of whatever else is going on, the luxury home market in the San Francisco Bay Area actually recorded modest gains in Q3 of this year. Area luxury home prices rose 2.6% from last quarter and 3.9% from Q3 last year, and averaged a whopping $3.08 million. The same segments in San Diego and Los Angeles weren't so lucky, though the depreciation was relatively tempered. This is all according to First Republic Bank's 'Prestige Home Index', which monitors trends in homes worth more than $1 mil. in "key urban markets." This relatively low price cutoff sort of raises the question if indeed the index is really concentrating on luxury homes, prices in the state and area being what they are. Even so, this is a bit of a platinum lining for folks with such homes in the area. The message to the rest of us? "Buy only high-end homes"—perhaps a "let them eat cake" for the new millennium.
· Luxury Home Values Rose Modestly in San Francisco, Fell Slightly in Los Angeles and San Diego in Third Quarter [PR Newswire]
[Image courtesy The Warehouse]