Californian Luxury house prices soared in the second quarter of 2005, according to the First Republic Prestige Home Index by First Republic ...

Californian Luxury house prices soared in the second quarter of 2005, according to the First Republic Prestige Home Index by First Republic Bank. Double-digit gains and rises to all-times highs were achieved in Los Angeles, San Diego and San Francisco in the second quarter of 2005, compared to a year ago. The index has tracked luxury house prices since 1985. The latest findings reveal that Los Angeles values jumped 2.6 per cent from the first quarter of 2005 to the second quarter of 2005 and rose 21.9 per cent from the second quarter a year ago. This puts the average luxury home in Los Angeles at $2.09 million, up $376,000 from a year ago. The index shows that values have increased 20 per cent or more for four consecutive quarters on a year-over-year basis. In San Diego, values increased 2.2 per cent from the first to the second quarter of 2005 and were up 16.5 per cent from the second quarter a year ago. The average luxury home in San Diego is now above $2 million for the first time at $2.01 million, an increase of $285,000 from a year ago. Values in the San Francisco Bay Area rose 3.9 per cent from the first quarter of 2005 to the second quarter of 2005 and gained 10.4 per cent from a year ago. They remain the highest in California at $2.8 million, up $263,000 from the second quarter of 2004. "Luxury home prices in California set records again in the second quarter of 2005 due to double-digits gains. Despite these significant increases, we are starting to see some resistance to prices, and buyers are exercising more caution. First Republic believes values will not appreciate as rapidly as they have over the past few years, particularly if interest rates continue to rise," said Katherine August-deWilde, chief operating officer of First Republic.