With a drumroll, let’s reveal and discuss the results of First Republic Bank’s Prestige Index for Los Angeles, California. An earlier article about San Diego’s Prestige Index offered some interesting data. Hopefully the report on the Los Angeles luxury home market won’t disappoint!
As might be expected, the pace of luxury home appreciation in Los Angeles has cooled somewhat, but is far from being in the tank. The report reveals that at mid-2006, the average price for a luxury home in Los Angeles stood at a record $2.29 million—a $253,000 increase from a year earlier. That’s a healthy 12.4 percent increase (What bubble???). The rate of increase in the luxury home market, though, appears to be slowing.
Los Angeles homes in marquee locations, says the FRB report, remain in hot demand, 
but the lower end of the luxury market has slowed here as in other California markets. That bottom segment of the luxury market reflects homes priced from $1.5 to $3 million. Rising interest rates are blamed on the slowdown in that price range.
Real estate in this luxury home study represent properties from the upscale areas of Arcadia, Beverly Hills, Calabasas, La Canada Flintridge, Encino, Los Angeles, Malibu, Marina del Rey, North Hollywood, Pacific Palisades, Pasadena, Playa del Rey, Santa Monica, Studio City and the pricey West Los Angeles communities of Bel Air, Brentwood and Westwood.
Also read:
United States a Bargain for $1 Million Homes?
San Diego Luxury Homes—and More
Insuring Luxury Homes
Breaking All Barriers: Luxury Homes Reach Nine Figures
And Just What is a Luxury Home?
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