Luxury home sales up by 9 percent

Million-dollar plus home sales have continued to outpace the rest of the housing market in the third quarter.  A 9% increase in sales for $1 million plus homes while the rest of the market showed a decline from the same time last year of 1.2%, according to Redfin.

According to First Republic Bank, in the third quarter of 2014, the Index indicated the following:

• San Francisco Bay Area values gained 14.3% from the third quarter of 2013 and 3.8% from the second quarter of 2014. The average luxury home in the region is at an all-time high of $3.44 million.
• Los Angeles area values jumped 13% from the third quarter a year ago and 3.7% from the second quarter of 2014. The average luxury home in the area is at an all-time high of $2.61 million.
• San Diego area values were up 4.8% year-over-year and 1.5% from the second quarter of 2014. The average luxury home in San Diego is $1.98 million.

“Luxury home values in San Francisco and Los Angeles were quite strong, while San Diego values continued to appreciate but at a slower rate,” said Katherine August-deWilde, President of First Republic Bank. “Price increases continue to be driven by low interest rates, limited inventory and a good economy. Luxury properties are routinely selling for over the asking price and often with multiple offers.”

Markets that are most dependent on international demand are seeing a steady and dramatic decline in sales of million-dollar-plus homes, according to Redfin. Meanwhile, sales of expensive homes continue to rise at a steady pace in cities where those sales rely less on investors, both foreign and domestic.