If it's been thought the luxury market is somewhat immune to what goes on in the rest of the market, Bloomberg announced today that luxury home prices in California fell for the first time in two years.
Since 2004, the average price of a luxury home fell .08 percent to $2.35 million in Los Angeles, according to a survey done by San Francisco-based First Republic Bank. But then the survey goes on to state: "During that period, Los Angeles luxury home values nearly doubled," while an analyst chimes in: "Prices don't appear to have come down too much.''
PLUS, the story considers a $1.25 million home "luxury"--that's a steal in some affluent neighborhoods. Our heads hurt. We're confused by this story. Which has been updated four times, we'll point out.
· California Luxury Home Prices Fall as Buyers Wait[Bloomberg]