California Luxury Home Values Decrease

California luxury home prices declined in the third quarter of 2008 from a year ago and from the second quarter of 2008, according to the First Republic Prestige Home Index(TM) by First Republic Bank, a leading provider of private banking, private business banking and wealth management services.

In the quarter ended Sept. 30, 2008, the Index indicated the following:

-- Los Angeles area values fell 1.9% from the second quarter of 2008 and 4.2% from the third quarter of 2007. The average luxury home in Los Angeles is now $2.33 million.

-- San Diego area values dropped 2.1% from the second quarter of 2008 and 7.5% from the third quarter of 2007. The average luxury home in San Diego is now $1.98 million.

-- San Francisco Bay Area values declined 0.7% from the second quarter of 2008 and 3.0% from the third quarter of 2007. The average luxury home in San Francisco is now $2.99 million.

"Values of luxury homes declined in the third quarter in response to turmoil in the financial markets and the underlying weakness in the broader housing market," said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. "Further price declines are likely due to the overall slowdown in the U.S. and global economies." read more