Image: LA Classic Estates
In the first quarter of 2013, the average price of luxury homes in Los Angeles County rose 7.1% compared to the first quarter of 2013.
A new study by the First Republic Prestige Home Index by First Republic Bank indicates that the average price of a high-end home in Los Angeles for the first quarter of 2013 was $2.1 million, which is 1.9% higher than the average price in the final three months of 2012. The Beverly Hills Courier reports that Billy Rose of The Agency in Beverly Hills said, “the first quarter of this year was on fire.”
Los Angeles average luxury home price of $2.1 million compares to $2.8 million in San Francisco and $1.7 million in San Diego, and it is the highest it has been in almost four years.
President and COO of First Republic Bank told The Beverly Hills Courier, “Limited inventory exists in many areas, and buyer demand is accelerating for properties in the most desirable neighborhoods. Many homes have received multiple offers and are selling over the asking prices.”
Rose indicates that these results are a consequence of a “real confidence in the economy, foreign buyers and wealthy people who no longer want to hold off buying homes.” An observed lack of inventory has created what appears to be a “true competition in the market.”
The study looked at homes in many high-end areas of Los Angeles, including Beverly Hills, Calabasas, Malibu, North Hollywood, Pacific Palisades, Santa Monica, Bel Air, Westwood, Brentwood and more.