Sophia Zaller 7:30 a.m., July 30
San Diego Sees An Increase In The Cost of Luxury Homes
Values of luxury homes are up in San Diego, according to private bank and management firm, First Republic Prestige Home Index. The median price for luxury home in San Diego is now $1.63 million, a 1.1 percent increase compared to the second quarter.
The news comes on the same day that the Commerce Department announced that while home sales are on the rise median prices fell to the lowest level so far this year.
"I'm seeing a bit of pent up demand in the $1.5 million to $3 million range," said La Jolla realtor Greg Noonan in a press release. "At $4 million and above, it is a fairly soft market. Buyers are being extremely aggressive in their thinking about price. If a property is on the market for $4 million, buyers want to pay $3.5 million to build in some downside protection."
"We are very busy, but every single deal is a major struggle," added Lucy Kelts, a realtor in Rancho Santa Fe. "You have to talk realistically with sellers up front. We're not going to get out of this mess until the jobless rate goes down by half."