Luxury home values rise in the US
While the US housing market has, along with the UK’s, experienced a miserable couple of years, the value of luxury properties are starting to rise, according to First Republic Bank.
Luxury home values posted a modest increase in the fourth quarter of 2010 in Los Angeles, San Diego and San Francisco, according to the bank’s First Republic Prestige Home Index, which tracks the market.
Los Angeles area values rose 0.6 per cent over the last three months if the year, to hit $1.97 million. However, they were still down 2.2 per cent from a year ago.
Top-end properties in the San Diego area, meanwhile, gained 0.8 over the quarter and 0.6 per cent over the year; the cost of these properties now averages $1.71 million.
The luxury market in the San Francisco Bay area led the way and saw prices rise by 1.5 per cent; furthermore, these homes were worth 3.6 per cent more than a year prior, at an average of $2.6 million.
While some areas of the global housing market were hit hard by the financial crisis, with values tumbling in the US and a number of European countries, there have been some bright spots for the industry. Many Asian markets, for instance, have been booming, with China having to impose controls in a number of cities to quell demand. Also, the luxury segment has appeared to fair better than the market in general.
