On Monday according to the index released by First Republic Bank, luxury home’s average price in Los Angeles has increased to $2.01 million in the last quarter. The values record gains in Los Angeles, San Francisco and San Diego in the third quarter comparatively to the second one.
The value of Los Angeles area, West Hollywood increased to 0.7 percent from the previous record. According to the First Republic Prestige Home Index, the average of luxury home is $2.01 million in Los Angeles. This time luxury market seems to be strong and sturdy, the value of which is increased in all the three quarters out of past four quarters. Jane Brill Graven of Coldwell Banker is of the opinion if homes are priced at five million dollar; the market continues to be active. The prospective buyers will have the upper hand in the real estate market. The owners have to reduce prices.
According to Katherine August-deWilde of First Republic Bank, the price of luxury homes increased just because of the low interest rates, decline in home prices over few years. The metropolitan areas have gained in prices of homes for the first time in the third quarter since the 4th quarter of 2010. According to Noonan buyers exceeding their normal limits, are very aggressive about price. If the market price of the property is $4 million, buyers only wish to pay $3.5 million. The First Republic Prestige Home Index measures homes’ value that exceeds more than $1 million in urban markets of California. The index includes the luxury homes in 3,000 to 6,000 square feet and three to six bedrooms and bathrooms.