Luxury home prices in Los Angeles, San Diego and San Francisco increased to all-time highs during 2005, according to the First Republic Prestige Home Index, which tracks homes valued at more than $1 million in key California markets. While luxury home prices appreciated by 13% or more for the year in Los Angeles, San Diego and San Francisco, price appreciation slowed to 1% or less during the fourth quarter of 2005.

According to the report, the value of high-end homes in Los Angeles jumped 16% in 2005, following a 27.7% increase in 2004. Since December 2002, the value of the average luxury home in Los Angeles has increased by more than $945,000 to almost $2.3 million. The prices of luxury homes in San Diego and San Francisco also recorded double-digit gains in 2005, rising 13.3% and 13.2%, respectively. The average luxury home in San Diego now stands at a record $2.09 million, while the average luxury home in San Francisco is valued at $2.88 million.