Prices are rising, but not as fast as last year. There are no bidding wars now, and properties requiring significant renovation sit on the market longer. Upscale buyers now seem to be purchasing less home than they can afford. However, San Diego real estate brokers also see the market moderating. However, there are no offers over asking price and inventory is increasing due to resales and new homes.
Buyers are savvier and slower to make an offer.
With lower interest rates and more inventory, however, I think we're headed for a good summer. The Index is the combined product of First Republic Bank, the leader in luxury home financing in California, and Case Shiller Weiss, Inc. of Cambridge, Mass., a pioneer of the repeat sales index and a recognized leader in tracking historical price trends of single-family homes. The First Republic Prestige Home Index in each market is based on a portfolio of individually selected, single-family homes that have had their value traced back to 1985 using regression analysis. For each home in the portfolio, a market valuation was performed for each year taking into account repeat sales, comparable sales, and characteristics such as house size. Arcadia, Beverly Hills, Calabasas, La Ca ada Flintridge, Encino, Los Angeles, Malibu, Marina del Rey, North Hollywood, Pacific Palisades, Pasadena, Playa del Rey, Santa Monica, Studio City and the West Los Angeles enclaves of Bel Air, Brentwood and Westwood.