After languishing in the doldrums along with the rest of the country for an extended period of time, luxury home values in the Denver area have been enjoying a major recovery over the past two months. While this trend has not been completely unexpected by the realtors in the area, the percentages by which they have increased have been spectacular to say the least.
April Saw Record Sales
Sales of luxury home (those price at $1 million or more) have skyrocketed by an almost unprecedented 142 percent compared to the same time period last year. In fact this may be a record for luxury home sales of this value. Those in the $500k range also saw double digit sales increases in April. According to publicly available records, during the month of April 87 Denver homes in the $1 million plus range sold.
This an increase of sales in March of 47.5 percent when 59 homes in this price range were reported to have been made. It also appears to be the start of a new trend in luxury home sales in the Denver area as sales and prices have continued to increase.
May Started Heating Up
While the percentages were not quite so dramatic for the month of May, they are still very promising with 101 luxury homes in Denver being sold. This is an increase of 33 percent when compared to luxury housing sales in Denver in May of last year. Along with this increase in sales, Denver luxury home prices have continued to increase in value with prices up 2.4 percent over those in April and 2.2 percent since the same time period last year. Average house prices in this bracket were $1.3 million compared to $1.27 million in April.
June Just Kept Getting Hotter
Not only did the weather continue getting hotter during the month of June, but so did luxury housing sales. Sales of luxury homes in the month of June topped out at 112 units priced at over $1 million, which is 11 more than sold during the month of June in 2012. At the same time the median house price jumped from $1.245 million to $1.32 million. Realtors are seeing this as a sure sign that the luxury housing market here in the Denver area is on the rebound.
Asking and Selling Prices Get Closer
Perhaps what is more important from the sellers' point of view, is that the gap between asking prices and selling prices is closing. This is considered to be a good sign that the luxury home market in the Denver area is enjoying a solid recovery. In June of 2012 the number of luxury homes being sold at asking price averaged approximately 93.2 percent. In June of 2013 the number averaged 96.1 percent.
Although realtors do expect to see a slight slowdown in the market over the remainder of 2013, all indicators continue to point towards strong sales and further recovery of housing values. Much of the current recovery may be in part due to more money being available for financing than has been in the past. At the same time, despite recent increases in mortgage rates, they are still sailing along at close to the historically low rates the market has been seeing, leading more buyers to take advantage of the situation.
According to realtors throughout the Denver area, the remainder of the summer looks to be a very good one for both sellers, who will be able to sell near or at asking prices, and for buyers who can take advantage of the low mortgage interest rates to get into the house of their dreams.
FOR MORE INFORMATION CALL LAURIE STOESSEL 303-378-2320