S.F. Bay Area luxury home prices set record (Average: $2.88 million)

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Silicon Valley/San Jose Business Journal - 6:31 AM PST Wednesday
Report: Bay Area luxury homes prices set record

Luxury home values rose to all-time highs in the Bay Area in 2005 on the strength of double-digit gains, but appreciation slowed significantly in the fourth quarter, according to a report issued on Wednesday. First Republic Bank said high-end home values in the region rose 1 percent from the third quarter of 2005 to the fourth quarter of 2005 and gained 13.2 percent for the year.

The average luxury home in the Bay Area is now a record $2.88 million, up $336,000 from a year ago, according to the bank's Prestige Home Index.

It measures 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.

The Bay Area's 2005 increase followed a gain of 13.7 percent in 2004, 0.3 percent in 2003, 3.6 percent in 2002 and a decline of 7.1 percent in 2001. Since December 2002, the bank said the average luxury home in the region has increased more than $651,000 to almost $2.9 million.

http://www.bizjournals.com/sanjose/stories/2006/02/20/daily22.html?f=et79&hbx=e_du