In San Francisco, the value of homes went up last month. Although no one is surprised that it’s expensive to live in the City by the Bay, observers are noting that in Los Angeles, the situation was reversed. News of the fact came via a press release issued by First Republic Bank, the private banking and wealth management firm that analyzes the comparative luxury home values in its Prestige Home Index.
According to First Republic Bank’s findings, there was a 0.7 percent drop from the fourth quarter value of Los Angeles luxury homes, situating the average price of such a home in Los Angeles at $1.96 million. By contrast, San Francisco luxury properties rose 2.9 percent from fourth quarter values. The fourth quarter ended this past March 31st. That 2.9 percent uptick means that the value of luxury homes in San Francisco has increased 4.2 percent in the past year.
First Republic Bank’s president and chief operating officer, Katherine August-deWilde, attributed the Bay Area’s rising numbers to the “strength of the technology sector” as well as to “high demand and low inventory.” August-deWilde, in the same press release, also stated that “low interest rates, increasing rents, and higher housing affordability are resulting in increased market activity throughout California.”
Real estate agents in Southern California seem to be hopeful that the value of A-list properties in Los Angeles will soon be on the rise again. An agent from Los Angeles’ Sotheby’s International Realty, Bennett Carr, believes that “pent-up demand and a desire for top-quality property is fueling a dramatic rebound in the sales and prices of A+ property,” adding that current buyers are making their purchases with cash.