Luxury homes rose 3.0% in Los Angeles for the second quarter of 2006 and up 12.8% from a year ago, according to the First Republic Prestige Home Index.
The luxury home market is stabilizing while the values continue to increase at a slower rate due to high inventory and interest rates. Prices are more aggressive since buyers have more options compared to a year ago.
The market above $10 million remains strong with a mid tier slowing. With high inventory, buyers have become choosier.
