Luxury Market Hits New Heights in California

Luxury home prices have reached record highs in San Diego as measured by the First Republic Prestige Home Index. The bank, which has been tracking luxury home prices since 1985, reported:

San Diego luxury homes now cost a record $2.09 million, up 13.3% or $245,000, from a year ago.

Overall, prices aren't expected to climb as quickly this year. "Continuing demand and limited inventory in some markets mad result in increased luxury home prices in 2006, but at a very modest level compared to the past two years, predicts Katherine August-deWilde, chief operating officer of First Republic Bank. But one real estate professional says 2006 is already beating 2005. "There are multiple offers on appealing and competitively priced properties," he says. "That's in contrast to the last quarter of 2005, when even good properties that were well-priced were sitting."

Source: Realtors.org