SAN FRANCISCO—Luxury home values continued to rise in SanFrancisco in the third quarter of 2014 compared to a year ago,according to the First Republic Prestige Home Index by FirstRepublic Bank, a leading private bank and wealth managementcompany. The Index indicated that San Francisco Bay Area valuesgained 14.3% from the third quarter of 2013 and 3.8% from thesecond quarter of 2014.

|

The average luxury home in the region is at an all-time high of$3.44 million, says the report. KatherineAugust-deWilde, president of First RepublicBank, says that "Price increases continue to be driven bylow interest rates, limited inventory and a good economy.”

|

She adds that “Luxury properties are routinely selling for overthe asking price and often with multiple offers.”

|

Prices climbed due to continued demand, adds MalcolmKaufman of Alain Pinel in San Francisco.“The market throughout San Francisco was strong through the thirdquarter. I see no tapering for the balance of the year.”

|

Kaufman adds that “There are just not enough single-family homesfor the expanding population. Developers cannot build fast enoughto meet demand.”

|

In Silicon Valley, the market remained very active. “Our thirdquarter was perhaps our strongest ever,” notes PatKalish of Alain Pinel in Palo Alto."Inventory remains very low. Prices are up, and in some cases, are50% higher compared to the third quarter last year. Multiple offersare the rule. Only rarely are we seeing single offers, and eventhose often exceed the list price.”

|

In southern Marin, values also moved higher. “There are a lot ofpeople vying for homes in the $2 million to $3 million range,” saysKen Dara of Decker Bullock Sotheby'sInternational Realty in Mill Valley. "Below that, themarket is even crazier. Above $4 million, houses are moving, butthere are fewer buyers. In the high end, the home has to beperfect.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.