According to a report from First Republic Bank, a private bank and wealth management company, luxury home values increased in San Francisco, Los Angeles and San Diego, CA, in the third quarter of 2013 compared to a year ago.

According to a report from First Republic Bank, a private bank and wealth management company, luxury home values increased in San Francisco, Los Angeles and San Diego, CA, in the third quarter of 2013 compared to a year ago.

San Francisco Bay Area values climbed 10.4 per cent from the third quarter of 2012 and 1.9 per cent from the second quarter of 2013. The average luxury home in San Francisco is $3 million.

Los Angeles area values rose 14 per cent from the third quarter a year ago and 6.7 per cent from the second quarter of 2013. This quarter’s increase was the sixth straight quarter that values have risen. The average luxury home in Los Angeles is now worth $2.3 million.

San Diego area values gained 13.5 per cent year-over-year and 6 per cent from the second quarter of 2013. The average luxury home in San Diego is almost $1.9 million. The home values now are the highest since the fourth quarter of 2008.

"Luxury communities in California's urban coastal areas continue to experience limited inventory and strong demand from US and foreign buyers," said Katherine August-deWilde, president and chief operating officer of First Republic Bank.