The Prestige Home Index

by Roberta Murphy

First Republic Bank has created the first statistical model The Prestige Home Index that measures changes in home values in excess of $1 million in key California markets. What are some of the common features of these indexed homes? They have at least 3000 to 6000 feet, three to six bedrooms and three to six bathrooms, according to the study. Many are substantially larger. Digested reporting of this index would probably too hefty for one blog. Instead, well turn it into three shorter ones.

Todays focus will be balmy and palmy San Diego County in Southern California with emphasis on the tony towns and zips of Rancho Santa Fe (92067), La Jolla (92037) and Del Mar (92014).

First Republic reports that the average luxury home in San Diego is a record $2.18 million at the end of 3Q 2006. First Republics Luxury Home Index additionally reports that San Diego luxury home values may have risen 1.9% from the second quarter of 2006, but year-over-year increases have been declining for the past six quarters. Sales may be a bit slower in upscale Rancho Santa Fe than they are in the coastal communities of Del Mar and La Jolla. That may be because many second, third and fourth vacation home buyers demand ocean proximity. Still, the $8 million-and-up luxury market is reported to be strong not only along the Pacific beaches, but more inland as well.

Independent Sandicor MLS research reveals some interesting numbers for Rancho Santa Fe. There are currently 181 active lisitngs ranging in price from a low of $1.5 to $40 million. There are 20 sales pending, ranging from $1.5 to 6 million, and 47 sales closed clustered at and below the $3 million mark. A cursory review of the numbers might indicate that Rancho Santa Fe (92067) is recovering from quiet 2006, when the bulk of sales in that luxurious zip code were huddled at the lower end.

Coastal La Jolla (92037), which is more populous than Rancho Santa Fe, has fewer active MLS listings with only 146 -ranging in price from $900,000 to $22 million. There are 36 sales pending ranging from $990,000 to $5 million, and 129 sales recorded in the last six months. Prices ranged from $700,000 for a tiny town cottage (pictured) to $12 million for an oceanfront Camino de la Costa residence (left). Sales are obviously more brisk by the coast.

Beachy and quaint Del Mar (92014), with a resident population of less than 5000 people, has 71 active listings in the MLS at this writing, ranging from $800,000 to $50 million for an exquisite beachfront home. Pending sales number 14 from a low of $799,000 to a high of $4.7 million. Closed sales reported for the last six months number 53, and range from $715,000 to $6 million.

These are not the only San Diego communities with multi-million dollar price tags. Luxury properties included in FRBs index came from the upscale cities of Carlsbad, Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe, San Diego and Solana Beach.