The price for luxury homes in Los Angeles continued its upward trend in the third quarter, marking five quarters in a row of double-digit gains. The gains, according to First Republic Bank, are largely due to limited inventory and low interest rates.
Luxury homes are those valued at over $1 million. Homes in this category are up 13% from the third quarter in 2013 and up 3.7% from the second quarter this year. Their average price is $2.61 million — a record high.
“Price increases continue to be driven by low interest rates, limited inventory and a good economy,” explains Katherine August-deWilde, president of First Republic Bank. “Luxury properties are routinely selling for over the asking price and often with multiple offers.”
Here in the South Bay, the majority of price increases are for certain homes, namely those that are turnkey, have prime views, and are new or newly remodeled.
