Daily Real Estate News  |   February 26, 2007  |   Luxury Home Prices See First Slip Since '04
During last year's fourth quarter, luxury home prices in California declined for the first time since 2004 and sellers received fewer multiple offers, according to a report by First Republic Bank in San Francisco.

The bank tracks the price of numerous upscale homes across the state. "The housing market is softening from its runaway pace and heading toward a balanced market," says First Republic Chief Credit Officer David Lichtman. The latest index shows:

• Los Angeles values slipped 0.8 percent from the third quarter of 2006 to the fourth quarter and were up 2.9 percent from a year ago. The average luxury home in Los Angeles is now $2.35 million.
• San Diego values declined 1.3 percent from the third quarter of 2006 to the fourth quarter and gained 3.3 percent from a year ago. The average luxury home in San Diego is now $2.15 million.
• San Francisco Bay Area values fell 1.5 percent from the third quarter of 2006 to the fourth quarter and gained 1.5 percent from a year ago. The average luxury home in San Francisco is now $2.92 million.

"Buyers stayed away and sellers pulled their homes and said they'd put them out in the spring," says Maxine Golden, a broker with Re/Max Real Estate Services in Newport Beach.

Source: Los Angeles Times (02/22/07)