Luxury Home Prices Up 2.8%

The average price of a luxury home in San Diego County rose 2.8 percent in the first quarter of this year, compared to the first three months of last year, according to a study released Wednesday.

The cost was also up 3.6 percent over the previous quarter, which covered the final three months of 2012, according to the First Republic Prestige Home Index by First Republic Bank.

The average cost of a luxury home in the San Diego region in the first quarter of this year was $1.7 million, the highest since the end of 2010, according to the index. That compares to $2.1 million in Los Angeles and $2.8 million in San Francisco.

"Limited inventory exists in many areas, and buyer demand is accelerating for properties in the most desirable neighborhoods," said Katherine August-deWilde, the bank's president and chief operating officer. "Many homes have received multiple offers and are selling over the asking prices."

Cody Steele, of Steele Realty in Cardiff, said luxury homes turned into a sellers market around San Diego at the beginning of this year.

"There is a lot of money moving out of stocks into real estate and other tangible assets," Steele said. "We've seen many cash deals. It seems like there are about 20 buyers for every listing."

Scott Aurich of Sotheby's Pacific Coronado said the big money is coming off the sidelines and heading into real estate.

In San Diego County, the index tracks sales of luxury homes in Carlsbad, Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe, San Diego and Solana Beach.

First Republic Bank produces the Prestige Home Index each quarter with Fiserv CSW Inc., which provides automated property valuation services and home price metrics to U.S. financial institutions.

—City News Service