First Republic Bank’s Prestige Home Index indicates luxury homes in San Francisco had a strong finish to 2013. But some suggest that California’s high-end housing market is starting to see a slowdown.

Mark Calvey
Senior Reporter- San Francisco Business Times

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The Bay Area’s luxury home market is signaling a slowdown ahead even as prices late last year were still showing year-over-year double-digit increases.

First Republic Bank’s Home Prestige Index released Monday found that luxury home prices in the Bay Area and other key California markets are near records amid tight supplies of homes selling for $1 million and often more.

But it’s the commentary from real estate agents that set off alarms for careful followers of the luxury housing market. The commentary follows recent economic reports pointing to a national housing slowdown, which some blame on the extremely cold weather. The National Association of Realtors said last week that January existing home sales fell more than 5 percent nationally, the worst showing in 18 months. But if bad weather is to blame, some ask why were sales down 7.3 percent in the warm and sunny West?

In discussing First Republic’s latest quarterly figures released Monday, real estate agents in California’s luxury housing market are using telltale language of trouble ahead, with such phrases as “supply is plentiful” and the “market is solid,” while others see “buyer resistance” and “expect the market to level off.”

That type of talk could put a further chill on the housing market and prompt more home owners to put their properties on the market before prices fall.

Real estate agents say that pricing and demand for the limited supply of homes on the market is approaching levels last seen just before the housing market began to crater in 2007.

Earlier this month, Christopher Stafford and Terry Wright, both of Paragon Real Estate Group in San Francisco, sent an email to clients alerting them to “shifts in the San Francisco real estate market.”

“It is far too early in the year to reach definitive conclusions regarding substantive changes in the market, but there are indications of a number of shifts,” the Paragon agents said. “From the hurly burly on the street, the word is that the quantity of offers coming in on new listings is declining. Where a new listing might have attracted 10 or 12 offers last spring, three or four are coming in now; where three or four offers would have arrived, the seller is getting one.”

For those who don’t fully appreciate what the decline in offers mean, the Paragon brokers put it bluntly, “The amount of competition deeply affects home-price increases.”

“And, according to Broker Metrics, for every two listings that accepted offers in December and January, another listing expired or was withdrawn without selling.”

The Paragon agents see plenty of potential buyers checking out online listings and open houses, but more of them are first-time buyers who are “proceeding more cautiously.” Plus that group doesn’t come in with the buying power of home equity built up over the years.

“Though the market remains hot by any reasonable standard, by some statistical measure it is cooling,” the Paragon agents advised clients. “This may reflect a transition or only a lull before the spring sales season begins.”

On Monday Stafford echoed a frequently heard lament in Bay Area real estate circles, “There is no inventory.”

“It seems some of the heat has been taken off the market,” Stafford told me, adding that he views any references to the market “cooling” as overstating the case.

Those hoping that the Bay Area’s luxury housing market gets a big lift this spring might be disappointed as the affluent experience what Marcum’s accountants call “tax shock” as their higher 2013 tax bills must be paid. This segment of the market is also greatly affected by stock market performance, given how much wealth is created in the Bay Area through stock options and initial public offerings. The IPO market also helps set prices paid by acquirers of private companies. The tie between stocks and luxury housing is so strong that one real estate agent, when asked for his outlook on the region’s luxury home market, said, “You’re asking me to predict what the stock market will do.”

The traditionally strong spring housing market may see even more inventory come to market if home owners decide that they’ll get better prices by selling sooner than later.

On Monday, First Republic’s closely watched survey of luxury home values clocked in strong gains from a year ago, but more modest gains from the third quarter, especially when looking at the third quarter’s gain over the second quarter of 2013.

In the Bay Area, luxury home values in last year’s fourth quarter rose 12.4 percent from the fourth quarter of 2012 and 1.8 percent from the third quarter of 2013. That was just below the third quarter’s gain of 1.9 percent from the second quarter of 2013.

In Los Angeles, the fourth quarter’s luxury home values rose 13.7 percent from from a year ago and 1.3 percent from the third quarter. The quarter-over-quarter gain was down sharply from a 6.7 percent gain seen in the third quarter from the second quarter.

In San Diego, luxury home values rose 16.6 percent year-over-year and 1.3 percent from the third quarter of 2013. Again, that represented dramatic slowdown in price gains from the third quarter’s 6 percent increase from the second quarter.

San Francisco-based First Republic Bank produces the quarterly Prestige Home Index with Core-Logic Case-Shiller, a provider of automated property valuation services to the financial services industry. First Republic has tracked luxury homes since the bank’s founding in 1985.

The fourth quarter figures and analysis may provide a snapshot of rising luxury home values as the market was turning down.

“Luxury home prices again posted double-digit gains on a year-over-year basis,” said Katherine August-deWilde, president and chief operating officer of First Republic Bank. (NYSE: FRC) “Market conditions in California’s luxury communities continue to be very strong. Limited inventory, robust demand and low interest rates are driving prices higher.”

In Marin County, higher-priced homes saw gains.

“Going into the end of the year, homes $4 million and above finally picked up,” said Pat Montag of Sotheby’s International Realty in Mill Valley. “Prices are getting close to the peak of the market in 2007. We have very little inventory and that’s constraining the market.”

San Francisco also participated in the strong housing market last year.

“Prices continue to rise because there is so little inventory and so much demand,” said Mary Lou Castellanos of Sotheby’s International in San Francisco. “There are a lot of people who want to buy. The homes that do come to market generate multiple offers and offers over the asking.”

And new tech wealth is spurring luxury home buying on the Peninsula.

“From Palo Alto to Atherton, we are seeing offers 20 percent to 40 percent over the asking price,” said Pat Kalish of Alain Pinel Real Estate in Palo Alto. “It’s tech money as well as foreign buyers. From all indications, prices will keep increasing because the inventory is so low. If you’re a homeowner, this is one of the best times ever to sell.”

Hope springs eternal among those selling real estate.

Southern California also enjoyed a strong market as the stock market clocked in with one of its best years ever in 2013.

“The demand is incredible. It is much stronger than it was in 2006 at the height of the market. Homes that were selling at $10 million in 2005 and 2006 are now $20 million and $25 million. It’s astounding,” said David Mossler of Tele Properties in Beverly Hills.

Further south in Orange County Ron Miller of HOM Sotheby’s in Newport Beach told First Republic Bank that homes at $4 million are selling above year-earlier comps.

“The attractive properties are generating multiple offers,” Miller said. “I see some buyer resistance now and expect the market to level off.”

Even further south in the San Diego area, more signs of a cooling market are evident.

“We’re seeing multiple offers and offers over the asking for properly priced homes up to $3 million,” said Linda Sansone of Willis Allen in Rancho Santa Fe. “From $3 million to $5 million, the market is solid, prices are appreciating and supply is tight. For homes $5 million and above, there is plenty of supply, and prices are rising modestly.”

Sue De Legge of Sue De Legge Associates, also in Rancho Santa Fe, said home-price appreciation was driving the market.

“Rising prices are motivating more sellers to list their homes,” she said. “We expect more inventory to be brought to market in coming months.”

And as a reminder for those who missed Econ 101, rising supply is likely to put downward pressure on prices. One thing is certain: this spring’s home-selling season will be well worth watching.

Mark Calvey covers banking and finance for the San Francisco Business Times.

Article source: http://www.bizjournals.com/sanfrancisco/blog/2014/02/home-prices-san-francisco-real-estate.html?page=all

San Francisco’s luxury homes are in high demand.

Mark Calvey
Senior Reporter- San Francisco Business Times

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Luxury home values in the Bay Area hit their highest level since the fourth quarter of 2008, with the latest figures marking the fifth consecutive quarter of year-over-year gains.

The value of luxury homes rose 8.7 percent in the first quarter from a year earlier and are up 3.2 percent from last year’s fourth quarter, according to the First Republic Prestige Home Index.

The average luxury home in the Bay Area is worth $2.82 million.

Los Angeles area values rose 7.1 percent from a year ago and 1.9 percent from the fourth quarter of 2012. The average luxury home in Los Angeles is worth $2.1 million.

San Diego posted more modest gains, with luxury home values there rising 2.8 percent from a year ago and 3.6 percent from the fourth quarter. The average home value in San Diego is $1.7 million.

“Luxury home prices rose strongly in the San Francsico Bay Area and Los Angeles, and continued to recover in San Diego,” said Katherine August-deWilde, president and chief operating officer at First Republic Bank, (NYSE: FRC) which produces its report on luxury home prices every quarter with Fiserv CSW, a provider of property valuation services to the banking industry.

“Limited inventory exists in many areas, and buyer demand is accelerating for properties in the most desirable neighborhoods. Many homes have received multiple offers and are selling over the asking prices,” August-deWilde said.

Those hallmarks of the Bay Area housing market was captured in a Financial Times report last week, looking at all the tech wealth flowing into real estate.

Janis Stone of TRI Coldwell Banker in San Francisco sees strong demand from cash buyers, looking for homes in the $3 million to $6 million range.

Mark Calvey covers banking and finance for the San Francisco Business Times.

Article source: http://www.bizjournals.com/sanfrancisco/blog/2013/06/san-francisco-luxury-homes-real-estate.html

Prices Climb Strongly in San Francisco, Rise Modestly in Los Angeles and San Diego

SAN FRANCISCO–(BUSINESS WIRE)– Luxury home values rose in California’s major metropolitan markets in the third quarter of 2012 compared to a year ago, according to the First Republic Prestige Home Index™ by First Republic Bank, a leading private bank and wealth management company.

In the quarter that ended Sept. 30, 2012, the Index indicated the following:

• San Francisco Bay Area values rose 8.1% from the third quarter of 2011 and gained 2.4% from the second quarter of 2012. The average luxury home in San Francisco is now $2.73 million.
• Los Angeles area values rose 1% from the third quarter a year ago and declined 0.8% from the second quarter of 2012. The average luxury home in Los Angeles is now $2.02 million.
• San Diego area values climbed 2.2% year-over-year and increased 0.8% from the second quarter of 2012. The average luxury home in San Diego is now $1.66 million.

“Luxury home prices were particularly strong in the San Francisco Bay Area during the third quarter of 2012,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “The Bay Area economy is healthy, inventory is limited, and multiple offers are increasingly the norm. Values in Los Angeles and San Diego are rising, and some neighborhoods are experiencing strong demand. Historic low interest rates have resulted in an elevated level of activity in luxury markets throughout California.”

First Republic Bank produces the Prestige Home Index each quarter with Fiserv CSW Inc., a leading provider of automated property valuation services and home price metrics to U.S. financial institutions. Historical results of the Index, which has tracked luxury homes since 1985, are accessible at www.firstrepublic.com. First Republic Bank is an active lender in the luxury home market for primary residences and vacation homes.

San Francisco Bay Area Values

The Bay Area posted its second consecutive quarter of healthy gains on a year-over-year basis. The 8.1% year-over-year increase in the third quarter of 2012 was the highest since the first quarter of 2006.

In San Francisco, agents said the market remains robust. “Prices for luxury homes have been strong all year,” said Malcolm Kaufman of McGuire Real Estate in San Francisco. “There is limited inventory, the economy here has returned better than anywhere in the country, and employment is up. Lots of money is being spent on $5 million homes and $10 million homes. For some, it feels like 2005 again.”

In Silicon Valley, the market was very strong. “People have secure jobs and stable incomes,” said Pat Kalish of Intero Real Estate Services in Menlo Park. “Except for the highest end of the luxury market, there is strong competition for properties. We have scarcity of homes, historic low interest and an optimistic outlook. When you are out in the market, you feel the optimism.”

In the Marin County, the market was softer. “Marin has not seen the increases that have happened in Menlo Park or San Francisco,” said Pat Montag of Decker Bullock Sotheby’s International Realty in Mill Valley. “We typically lag a quarter behind San Francisco. We did see an uptick at the end of third quarter in the $3 million to $5 million range. Many people are still waiting until they see what happens in Washington D.C. in the first quarter.”

Los Angeles Area Values

In Los Angeles, values rose 1% on a year-over-year basis, but edged down from the second quarter of 2012. Real estate agents said the most desirable locations in Los Angeles area continue to experience accelerating demand and price increases.

Dan Weiser of Coldwell Banker Beverly Hills South said sales activity had returned to pre-financial crisis levels. “On the west side of Los Angeles, inventory is scarce and demand is high. We’re back to 2007 sales volume. Prices are probably within 10% of the height of the market. Sellers are getting incredible prices for properties in the highest end of the luxury market.”

Michele Hall of Coldwell Banker in Brentwood said newly constructed luxury homes are selling quickly. “New construction is flying off the shelf, with all cash and multiple offers. We’re seeing multiple offers in every price range, and there are fewer foreclosures and short sales. Inventory opened up, but was then snapped up.”

In Santa Barbara, the market also was very active. “The luxury market is very strong in Santa Barbara and Montecito,” said Joanne Schoenfeld of Santa Barbara Living Real Estate Brokerage. “There is a lot more activity and closed sales than last year. Prices continue to rise slightly, and I don’t see them going down any time soon. It’s a good, strong market.”

San Diego Area Values

San Diego luxury homes continued to trend higher on a year-over-year basis. Prices have now increased for the past three quarters on a year-over-year basis, including a 2.2% gain in the third quarter compared to a year ago.

For properties over $3 million, sales activity is picking up. “We have had a higher number of units sold this year than last year for homes over $3 million,” said Michael Taylor of California Prudential Realty in Rancho Santa Fe. “To me, that indicates fear has been wrung out of the market. People are now willing to spend more to buy a home, and they’re getting significantly more home because of the recent price declines. The perception is that we are at the bottom of this market.”

In the $1.5 million to $2 million range, there is more inventory, said Farid Khayamian of Bluxen Real Estate in La Jolla. “There are a lot of people who want to buy,” Khayamian said. “We see multiple offers everywhere, particularly when the property is priced right. A year ago, there was more inventory due to short sales and foreclosures, but that has dried up. Right now, you have to buy at the asking price. In January, we will have more inventory and possibly lower prices.”

About The First Republic Prestige Home Index

The First Republic Prestige Home Index™ is the first statistical model of its kind customized to measure changes in homes valued at more than $1 million in key California urban markets. Some common features of luxury homes in the Index: 3,000 to 6,000 square feet, three to six bedrooms, and three to six bathrooms. San Francisco Bay Area properties include a cross-section of luxury homes in Alamo, Atherton, Belvedere, Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos, Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross, St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside. Properties in Los Angeles represent a cross-section of luxury homes in Arcadia, Beverly Hills, Calabasas, La Cañada 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. San Diego properties represent a cross-section of luxury homes in Carlsbad, Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe, San Diego and Solana Beach. In producing the Index, Fiserv CSW Inc. draws upon its economic database and years of experience in tracking single-family home values; collects and cross-checks data from multiple sources; achieves a weighted balance of validation elements such as repeat sales, comparable sales and physical home characteristics; and combines this with First Republic’s extensive local market knowledge.

About First Republic Bank

First Republic Bank (NYS: FRC) and its subsidiaries provide private banking, private business banking and private wealth management. Founded in 1985, First Republic specializes in exceptional, relationship-based service offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. First Republic offers a complete line of banking products for individuals and businesses, including deposit services, as well as residential, commercial and personal loans. First Republic is a component of the SP Total Market Index, the Wilshire 5000 Total Market Index^SM, the Russell 1000®, Russell 3000® and Russell Global indices and six Dow Jones indices.

Blue Marlin Partners
Greg Berardi, 415-239-7826
greg@bluemarlinpartners.com

KEYWORDS:   United States  North America  California

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Article source: http://www.dailyfinance.com/2012/11/20/california-luxury-home-values-rise-again/

The real estate rebound in the Bay Area has brought the median price for a luxury home up to $2.67 million. That’s up 6.6 percent from last year — the biggest jump since 2006, the San Francisco Business Times reported.

Of course, ordinary home prices are up too. But those luxury homes are oh-so-much-more fun to look at, aren’t they?

The pop in luxury homes up here is bigger than the 2.4 percent growth seen in the Los Angeles area and the 2.5 percent in the San Diego area, according to First Republic Bank’s Prestige Home Index.

So the question is … what does $2.67 million buy you nowadays?

Well, that depends where you are. In Tiburon, that ballpark gets you a view of the Golden Gate Bridge from your living room, but the dated bathrooms can only be described as an “opportunity to renovate” in the sale copy.

$2.675 million in Tiburon (Zillow)

In Napa, you can get 26 acres with three houses on it and even a few acres of vineyard.

$2.675 in Napa (Pacific Union International)

In Menlo Park, $2.67 million buys a roomy 3,075-square-foot Craftsman.

$2.675 in Menlo Park (Bonnie Biorn, Coldwell Banker)

And in Walnut Creek, you could spread out in your own “custom estate,” with a main house and guest house combining for a whopping 7,568 square feet of living space.

$2.675 in Walnut Creek (Zillow)

If you had two and a half million bucks, which would you choose? We’re tempted by the thought of a rambling Napa getaway, but that Tiburon picture window view is worth a million words. Or maybe two and a half million of them.

More views of these median-priced luxury homes:

<!– –>

Carrie Kirby is a freelance writer who recently returned to the Bay Area after living for six years in Chicago. Carrie is more heavily invested in real estate than she ever expected to be, since she and her husband are now long-distance landlords of their Chicago home, and have also purchased a house in Alameda. She posts about interesting properties and real estate trends in San Francisco and Silicon Valley every Tuesday. Carrie also shares money-saving tips on her blog, Frugalistic Mom.

Article source: http://blog.sfgate.com/ontheblock/2012/09/18/bay-area-luxury-home-median-jumps-to-2-67-million/

San Francisco’s luxury homes are attracting eager buyers. 

Mark Calvey
Senior Reporter- San Francisco Business Times

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Don’t be surprised if you hear your real estate agent and mortgage lender suddenly belt out a rendition of “Happy Days are Here Again.”

Luxury home values in the Bay Area and other key California cities are chalking up their biggest gains since the housing boom went bust in the last decade.

Bay Area luxury home values soared 6.6 percent in the second quarter, the biggest year-over-year gain since the first quarter of 2006.

And Bay Area luxury home values rose 2.9 percent from the first quarter of 2012. The average luxury home in San Francisco is now $2.67 million, according to the First Republic Prestige Home Index produced by First Republic Bank and Fiserv CSW Inc. (NASDAQ: FISV)

“We have a hot market right now,” said Jay Costello, president of Hill Co. in San Francisco. “We’re going to see price increases over the next three to five years.”

Or at least until the Nasdaq makes a U-turn.

Real estate agents point to the strength of the stock market in driving Bay Area home prices since so many of the region’s affluent residents own stocks and options tied to publicly traded companies or private companies that will one day go public or be acquired, or so they hope.

The Nasdaq was approaching an 11-year high this week, thanks largely to shares of Apple (NASDAQ: AAPL) hitting a record high Monday on news of its patent-litigation victory against Samsung.

On the luxury home front, First Republic had more good news. California’s strengthening economy, which first emerged in the Bay Area, is now evident in luxury home values in Los Angeles and San Diego.

Los Angeles values increased 2.4 percent from a year ago and jumped 4.3 percent from this year’s first quarter, marking the biggest quarterly gain since the third quarter of 2005, when the national housing boom was in full swing. The average luxury home value in the L.A. area is now $2.04 million.

Mark Calvey covers banking and finance for the San Francisco Business Times.

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Article source: http://www.bizjournals.com/sanfrancisco/blog/2012/08/san-francisco-real-estate-home-prices.html

SAN FRANCISCO, Feb 22, 2012 (BUSINESS WIRE) –
Luxury home values declined slightly in Los Angeles and San Francisco,
but rose in San Diego in the fourth quarter of 2012 compared to the
third quarter, according to the First Republic Prestige Home Index(TM) by
First Republic Bank, a leading private bank and wealth management
company.

In the quarter ended Dec. 31, 2011, the Index indicated the following:

–
Los Angeles area values declined 1.8% from the third quarter of 2011
and dipped 0.1% from the fourth quarter a year ago. The average luxury
home in Los Angeles is now $1.97 million.

–
San Diego area values rose 1.1% from the third quarter but dropped
3.7% year-over-year. The average luxury home in San Diego is now $1.64
million.

–
San Francisco Bay Area values fell 0.3% from the third quarter and
were down 3.1% from a year ago. The average luxury home in San
Francisco is now $2.52 million.

“Luxury home prices in urban, costal markets in California were mostly
stable in the fourth quarter,” said Katherine
August-deWilde, President and Chief Operating Officer of First
Republic Bank. “Low rates, good values and positive economic news have
led to increasing interest in home buying in 2012. San Francisco and
Silicon Valley, in particular, are likely to benefit from the strength
of the technology and social media sectors.”

First Republic Bank produces the Prestige Home Index each quarter with
Fiserv CSW Inc., a leading provider of automated property valuation
services and home price metrics to U.S. financial institutions.
Historical results of the Index, which has tracked luxury homes since
1985, are accessible at
www.firstrepublic.com .
First Republic Bank is an active lender in the luxury home market for
primary residences and vacation homes.

Los Angeles Area Values

In Los Angeles, values have remained in a narrow range over the past two
years. In the first quarter of 2010, the average price of a luxury home
in Los Angeles was $1.98 million. In the fourth quarter of 2012, it was
$1.97 million.

Agents said buyer activity rose toward the close of the fourth quarter.
“The end of the fourth quarter closed very strong,” said Mary Beth Woods
of Coldwell Banker in Brentwood. “The problem is that we don’t have as
much inventory as we need. Buyers are hunting for properties. If the
home is priced close to recent comps, it will sell.”

Rory Posin of RE/MAX in Beverly Hills said the market has clearly picked
up. “I don’t think I could be any busier. Pricing is flat, but activity
is strong.”

In Santa Barbara County, the market appears to be firming. “The high-end
market in Montecito was slow the last couple of years, but it heated up
at the end of 2011,” said Rebecca Riskin of Village Properties in
Montecito. “Since January, we have seen multiple closings for over $9
million, as well as several homes above $15 million enter escrow. Buyers
remain price conscious, but there is a greater level of confidence in
the market.”

San Diego Area Values

San Diego values posted a second consecutive quarterly gain, but prices
were still down 3.7% year-over-year.

“Most of the high-end sales in the fourth quarter were on the
oceanfront,” said Andy Nelson, President and CEO of Willis Allen Real
Estate. “In the first quarter, we have seen new buyers looking for
properties. That’s a good sign. We also have reduced inventory and that
could help push prices. If prices start improving, we may see sellers
re-enter the market.”

In La Jolla, activity has increased markedly since the beginning of the
year. “The fourth quarter was slow, and we were worried it would carry
over into the New Year,” said Peggy Chodorow of Prudential California
Realty in La Jolla. “Since the beginning of the year, the market has
changed. People are buying houses, and the number of showings has
skyrocketed. We’ve even had some multiple offers. This is going on
across every price range.”

San Francisco Bay Area Values

In the Bay Area, Silicon Valley and San Francisco were the most robust
markets for luxury homes.

“You are starting to see the positive impact of social media IPOs, hedge
fund wealth, and interest from foreign buyers,” said David Barrett of
Warwick Properties Group in San Francisco. “The market is benefitting
from good old-fashioned consumer confidence. We recently had 100 people
at a showing.”

In Silicon Valley, the market was strong. “In the fourth quarter,
especially in the last two months, the market really picked up,” said
Monica Corman of Alain Pinel in Menlo Park. “Just about everything was
selling. Palo Alto has been strong, and it has spread to other
communities. There’s incredibly low inventory and pent-up demand.
Silicon Valley also has experienced job growth and IPOs. All of this is
driving the market.”

In Marin County, prices were stable. “The market is largely flat and
will remain flat for the next two to three years, with only modest
increases likely,” said Brad Garsten of Frank Allen Howard Realtors in
Greenbrae. “We’re going to continue to teeter along the bottom until the
economy comes back nationally and globally.”

About The First Republic Prestige Home Index

The First Republic Prestige Home Index(TM) is the first statistical model
of its kind customized to measure changes in homes valued at more than
$1 million in key California urban markets. Some common features of
luxury homes in the Index: 3,000 to 6,000 square feet, three to six
bedrooms, and three to six bathrooms. San Francisco Bay Area properties
include a cross-section of luxury homes in Alamo, Atherton, Belvedere,
Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos,
Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross,
St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside.
Properties in Los Angeles represent a cross-section of luxury homes in
Arcadia, Beverly Hills, Calabasas, La Canada 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. San Diego
properties represent a cross-section of luxury homes in Carlsbad,
Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe,
San Diego and Solana Beach. In producing the Index, Fiserv CSW Inc.
draws upon its economic database and years of experience in tracking
single-family home values; collects and cross-checks data from multiple
sources; achieves a weighted balance of validation elements such as
repeat sales, comparable sales; and physical home characteristics; and
combines this with First Republic’s extensive local market knowledge.

About First Republic Bank

First Republic Bank


/quotes/zigman/2803861/quotes/nls/frc FRC
-0.65%



and its subsidiaries provide private
banking, private business banking and private wealth management. Founded
in 1985, First Republic specializes in exceptional, relationship-based
service offered through preferred banking or wealth management offices
primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara,
Newport Beach, San Diego, Portland, Boston, Greenwich and New York City.
First Republic offers a complete line of banking products for
individuals and businesses, including deposit services, as well as
residential, commercial and personal loans. First Republic is a
component of the SP Total Market Index, the Wilshire 5000 Total Market
Index(SM), the Russell 1000(R), Russell 3000(R) and Russell Global
indices and six Dow Jones indices.

About First Republic Private Wealth Management

First Republic Private Wealth Management is the investment management,
trust and brokerage group of First Republic Bank. First Republic Private
Wealth Management offers objective advice and fully customized solutions
with the same level of exceptional client service that has been the
hallmark of First Republic Bank for more than 25 years. First Republic
has the flexibility to provide individuals, families, businesses,
endowments, schools and non-profit organizations with appropriate
choices that responsibly meet a client’s specific investment objectives.
Securities Products and Services are offered by First Republic
Securities Company, LLC – Member FINRA/SIPC. First Republic Securities
Company and First Republic Investment Management are wholly owned
subsidiaries of First Republic Bank. Unless otherwise disclosed,
investments through First Republic Investment Management and First
Republic Securities Company, LLC are not FDIC-insured, not bank
guaranteed and may lose value.

SOURCE: First Republic Bank

        Blue Marlin Partners
        Greg Berardi, 415-239-7826
        greg@bluemarlinpartners.com

Copyright Business Wire 2012

/quotes/zigman/2803861/quotes/nls/frc

Add FRC to portfolio

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Article source: http://www.marketwatch.com/story/luxury-home-values-stable-in-fourth-quarter-of-2011-2012-02-22

SAN FRANCISCO, Aug 22, 2011 (BUSINESS WIRE) –
Luxury home values rose in Los Angeles and San Francisco in the second
quarter of 2011 compared to the first quarter, but declined in San
Diego, according to the First Republic Prestige Home Index(TM) by First
Republic Bank, a leading private bank and wealth management company.

In the quarter ended June 30, 2011, the Index indicated the following:

–
Los Angeles area values climbed 1.7% from the first quarter of 2011
and increased 1.8% from the second quarter a year ago. The average
luxury home in Los Angeles is now $2.0 million.

–
San Diego area values decreased 1.2% from the first quarter and fell
6.0% year-over-year. The average luxury home in San Diego is now $1.6
million.

–
San Francisco Bay Area values rose 0.6% from the first quarter and
were 3.1% lower compared to a year ago. The average luxury home in San
Francisco is now $2.5 million.

“Luxury home prices were largely stable in the second quarter of 2011,”
said Katherine
August-deWilde, President and Chief Operating Officer of First
Republic Bank. “Certain communities in California, particularly those in
and around the Silicon Valley and parts of San Francisco, showed robust
activity. Real estate agents are now reporting that economic uncertainty
and stock market volatility are impacting some buyers, despite the
all-time low mortgage interest rates.”

First Republic Bank produces the Prestige Home Index each quarter with
Fiserv CSW Inc., a leading provider of automated property valuation
services and home price metrics to U.S. financial institutions.
Historical results of the Index, which has tracked luxury homes since
1985, are accessible at
www.firstrepublic.com .
First Republic Bank is an active lender in the luxury home market for
both primary residences and vacation homes.

Los Angeles Area Values

Los Angeles values rose 1.8% in the second quarter of 2011 from the same
period a year ago. The gain was the first on a year-over-year basis in
the past 14 quarters.

“The upper end of the market is very strong for well-priced homes,” said
David Mossler of Teles Properties in Beverly Hills. “There are four to
five buyers for every house. There is very little quality supply. I just
sold homes for $7.8 million and $8.6 million to all-cash buyers. If a
home is properly priced, demand is very strong. But the home has to be
well-priced.”

Charles Pence of Pence Hathorn Silver in Santa Monica said that prices
are varying widely by community. “More than ever before, we have highly
attractive micro markets with strong activity and price gains, but the
surrounding markets can often be flat. This market is driven more by a
lack of inventory than anything else. We’ve had some big sales in terms
of price. It is hard to predict what someone will pay for something now
at the upper end.”

Armen Sarkissian of Prudential California Realty in Pasadena said
pricing strategy is key for sellers. “If the price is right, people will
buy. There are a lot of buyers for $6 million to $7 million homes, but
they are scrutinizing every deal. Because buyers are also concerned
about purchasing a depreciating asset, the price has to be below the
comparable sales in the past three to six months.”

San Diego Area Values

In San Diego, prices continued a downward trend. On a year-over-year
basis, second quarter prices fell 6% compared to the second quarter of
2010.

Mo Loghavi of Prudential California Realty in La Jolla said he expects
prices to drop further. “People in the $1.5 million to $5 million want
to continue downsizing, but there are no trade-up buyers. We still have
another 12 to 14 months of inventory. By the end of 2012, we will see a
little more movement, but I haven’t seen the light at the end of the
tunnel for the luxury market.”

Farid Khayamian of RE/MAX Associates in La Jolla also said prices may
continue to weaken. “In San Diego County, we have roughly 23 months of
inventory for homes over $2 million,” he said. “Average supply is about
six months. Too much supply and not enough demand for higher end homes
will cause prices to soften. Low prices and high inventory are
encouraging many investors to make all-cash purchases.”

San Francisco Bay Area Values

San Francisco Bay Area values reversed course in the second quarter,
rising 0.6% after falling 4.3 percent in the first quarter of 2011. The
strong tech sector in Silicon Valley strengthened the market.

Ken DeLeon of Keller Williams Realty in Palo Alto said the market is
very strong. “Palo Alto is still really hot,” he said. “Palo Alto is
actually over 2006 prices. Interest is as good as I’ve seen it in 10
years. There was a home in Palo Alto that had 32 offers in the past
week. Palo Alto is leading the pack in the surrounding communities. I
expect to see Atherton, Menlo Park and Los Altos picking up by spring.”

In San Francisco, the market appeared to be slowing. “The second quarter
was starting to look better,” said Joel Goodrich of TRI Coldwell Bank in
San Francisco. “We had less inventory and more sales, but that was
before the recent stock market volatility. In the second quarter,
investor confidence was up in San Francisco, with the high tech boom in
Silicon Valley and parts of the city. I’m still very bullish on San
Francisco and the Bay Area over the next one to five years, assuming a
return to normal economic cycles.”

In Marin County, the luxury market was mixed. “In the mid-range, the
market is active,” said Pat Montag of McGuire Real Estate in Tiburon. “I
was surprised by the three recent listings that went into escrow in
Tiburon and Belvedere between $3 million and $7 million. For homes over
$15 million, we’re seeing some significant reductions, but many home
were overpriced.”

About The First Republic Prestige Home Index

The First Republic Prestige Home Index(TM) is the first statistical model
of its kind customized to measure changes in homes valued at more than
$1 million in key California urban markets. Some common features of
luxury homes in the Index: 3,000 to 6,000 square feet, three to six
bedrooms, and three to six bathrooms. San Francisco Bay Area properties
include a cross-section of luxury homes in Alamo, Atherton, Belvedere,
Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos,
Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross,
St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside.
Properties in Los Angeles represent a cross-section of luxury homes in
Arcadia, Beverly Hills, Calabasas, La Canada 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. San Diego
properties represent a cross-section of luxury homes in Carlsbad,
Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe,
San Diego and Solana Beach. In producing the Index, Fiserv CSW Inc.
draws upon its economic database and years of experience in tracking
single-family home values; collects and cross-checks data from multiple
sources; achieves a weighted balance of validation elements such as
repeat sales, comparable sales, and physical home characteristics; and
combines this with First Republic’s extensive local market knowledge.

About First Republic Bank

First Republic Bank


/quotes/zigman/2803861/quotes/nls/frc FRC
-0.88%



and its subsidiaries provide private
banking, private business banking and private wealth management. Founded
in 1985, First Republic specializes in exceptional, relationship-based
service offered through preferred banking or wealth management offices
primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara,
Newport Beach, San Diego, Portland, Boston, Greenwich and New York City.
First Republic offers a complete line of banking products for
individuals and businesses, including deposit services, as well as
residential, commercial and personal loans. First Republic is a
component of the SP Total Market Index, the 5000 Total Market Index(SM),
the Russell 1000(R), Russell 3000(R) and Russell Global indices and six Dow
Jones indices.

About First Republic Private Wealth Management

First Republic Private Wealth Management is the investment management,
trust and brokerage group of First Republic Bank. First Republic Private
Wealth Management offers objective advice and fully customized solutions
with the same level of exceptional client service that has been the
hallmark of First Republic Bank for more than 25 years. First Republic
has the flexibility to provide individuals, families, businesses,
endowments, schools and non-profit organizations with appropriate
choices that responsibly meet a client’s specific investment objectives.
Securities Products and Services are offered by First Republic
Securities Company, Member FINRA/SIPC.

SOURCE: First Republic Bank

        Blue Marlin Partners
        Greg Berardi, 415-239-7826
        greg@bluemarlinpartners.com

Copyright Business Wire 2011

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Article source: http://www.marketwatch.com/story/luxury-home-values-stable-in-second-quarter-of-2011-2011-08-22?reflink=MW_news_stmp

San Francisco’s luxury home values dropped in the first quarter to their lowest point since the first quarter of 2004, when the region was clawing its way back from the dot-com bust.

San Francisco Bay Area luxury home values lost 4.3 percent from the fourth quarter of 2010 and were down 1.9 percent from the first quarter of 2010, according to a quarterly survey produced by San Francisco-based First Republic Bank. (NYSE: FRC)

“Prices fell as sales activity declined,” said Katherine August-deWilde, president and chief operating officer at First Republic.

Luxury home values also fell in Los Angeles and San Diego.

In Los Angeles, they dipped 0.5 percent from the fourth quarter and were down 0.9 percent from last year’s first quarter.

In San Diego, luxury home values plunged 4.6 percent from the fourth quarter and 5.1 percent from last year’s first quarter.

The First Republic Prestige Home Index is produced quarterly with Fiserv CSW, (NASDAQ: FISV) a provider of property valuation services and home-price data to the nation’s financial institutions. The survey defines luxury homes as those valued at more than $1 million, which typically feature three to six bedrooms and a comparable number of bathrooms in 3,000 to 6,000 square feet.

“First quarter sales reflected the price discounting that took place in the second half of 2010. We had a buyer’s market in the final two quarters of last year,” said Stephen Gomez of Gomez Patton Real Estate in San Francisco. “Now we’re starting to see the window to the buyer’s market close.”

One factor fueling buyer interest is the flood of capital pouring into the region’s tech sector, generating buying power for those looking to purchase on the Peninsula.

“I see tons of buyers with money, but inventory is the issue,” said Geoffrey Nelson of McGuire Real Estate in Burlingame.

Buyer hesitation was on full display in the East Bay.

“There are actually a few buyers out there, but they are unwilling to commit,” said Sharon Dare of J. Rockliff Realtors in Danville.

Mark Calvey covers banking and finance for the San Francisco Business Times.
Contact him at mcalvey@bizjournals.com or (415) 288-4950.
Read his blog postings at Bay Area BizTalk.

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Article source: http://www.bizjournals.com/sanfrancisco/news/2011/05/23/san-francisco-home-prices-first-republic.html

Luxury home prices rose in San Francisco, San Diego and Los Angeles in the fourth quarter compared with the third quarter, with the Bay Area having the best showing, according to the First Republic Bank Prestige Home Index.

San Francisco-based First Republic Bank (NYSE: FRC) produces the Prestige Home Index every quarter with Fiserv CSW Inc., (NASDAQ: FISV) a provider of automated property valuation services to the financial services industry.

In another sign of the rising confidence among the wealthy, City National Bank‘s (NYSE: CYN) Bay Area regional executive Robert Brant said this week that investors have a newfound appetite for risk, referencing one potential client focused a few weeks ago on investing in Treasuries coming due over several years now eager to put the money into stocks.

Bay Area real estate agents say buyers are returning to the luxury housing market with greater conviction to seal a deal.

“All of a sudden people have their confidence back,” said Wendy McPherson of Coldwell Banker in Woodside.

David Shepardson of Coldwell Banker in San Francisco said, “We’re off to a good start in 2011. It is shaping up to be a pretty strong year because of low inventory and the fact that there are quite a few buyers out there.”

But he also had a word of caution for home sellers too aggressive in their pricing.

“If the property is overpriced, it will sit there,” Shepardson said.

Olivia Decker of Decker Bullock Sotheby’s International in Mill Valley said the good sales pace from December through February bodes well for the traditionally strong spring selling season.

“The market is definitely much better,” Bullock said.

Mark Calvey covers banking and finance for the San Francisco Business Times.
Contact him at mcalvey@bizjournals.com or (415) 288-4950.
Read his blog postings at Bay Area BizTalk.

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Article source: http://www.bizjournals.com/sanfrancisco/news/2011/03/04/first-republic-real-estate-prices.html