The Mile High City is setting record breaking milestones within its luxury real estate market. In May of this year, 179 homes priced over $1M sold and closed. The Denver Metro Association of Realtors (DAMR) verified these staggering statistics as being up over 21% from April, 2017, and up 38% year over year from April, 2016. The closed dollar volume for all luxury residential properties in May,2017, totaled $264,164,978. “By this time next month,” said Elaine Stucy, a DMAR Market Trends Community Member and metro Denver real estate agent, “sales in the luxury market of homes priced over $1M will likely surpass $1Billion to date.”
The only statistic that fell in Denver’s May, 2017 luxury housing market was its inventory. Its supply, instead of increasing as it usually does during the month when the greatest number of homes come into the market, reduced a full one percentage.
Denver’s average home prices rose to $449,736. in May, 2017. This number represents a +2.84% from April, 2017, and +9.83% from April, 2016.
Steve Danyliu, Chair of the DMAR Market Trends Committee and Denver real estate agent, said, “Competition for homes under $500,000. is fierce.” Only 41% of Denver’s total listings are priced at and/or under $500,000. and there is less than a one month inventory of homes at this price point. Danyliu went on to say, “Considering this price range (-$500,000.) accounts for 74% of all sales in metro Denver, homebuyers should expect continued competition.” Yes, to say the least, “…continued competition” along with the necessity of homebuyers being pre-approved so they can act with lightning speed if and when a bidding war takes off.
In fact, there was a similar scenario that just played out this month in Palo Alto, CA. A home came onto the market and was sold the very same day for a sale price that was 20% more than the listing price. Scant housing inventory = higher prices + fewer, if any, days on the market.