John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... It’s not just the lower-priced homes that are moving in the Denver-area market.
Buyers snapped up 55 homes priced at $1 millio or more in May, a 61.8 percent increase from the 34 homes in that lofty, luxury price range that sold in May 2009, according to an analsyis released today by Coldwell Banker Residential Brokerage. Sales in that price range, however, were down slightly from the 58 transactions in April. The median sale price of luxury homes last month was $1.28 million, up 6.7 percent from the previous month and up fractionally from a year ago, according to the report based on Mutliple Listing Service data.
Also encouraging, homes are selling faster than they did the previous month and a year ago, according to the report. May closings took an average of 122 days to sell compared to 140 in April and 131 in May 2009. And home sellers are getting a higher percentage of their asking price – 93 percent compared to 90 percent in April and less than 83 percent a year ago.
“The increase in million-dollar sales in the Denver area is an encouraging sign that the mid- and upper-end of the local housing market continues to recover from last year’s sharp downturn,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado.
Mygatt said the expiration of the federal tax credit deadline probably helped boost sales again last month, even in the million-dollar market. First-time and repeat buyers needed to be in contract by April 30, but don’t have to close escrow until June 30. Although the tax credits primarily benefited entry-level buyers, they likely spurred more move-up buyers who sold lower-priced homes in order to trade up to million dollar-plus properties.
Coming months key
“The next few months will give us a good indication of how strong the housing market recovery will be without government stimulus,” Mygatt said. “There are certainly strong headwinds facing the housing sector, including high unemployment, troubles in Europe with the debt market and the recent volatility in the stock market.”
But at the same time, Mygatt said, the U.S. economy continues to slowly but steadily recover, consumer confidence is rising and mortgage rates remain at historical lows. “Many buyers seem to be getting off the fence and jumping into the market, realizing that between low rates and more favorable prices, this is a good time to get into a home,” he said.
Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:
* The most expensive sale in the Denver metro area in May was a four-bedroom, seven-bath 8,000-square-foot home in Boulder that sold for $4.45 million;
* Denver boasted the most million-dollar sales with 18, followed by Boulder with 11, Castle Rock with five and Greenwood Village with four.
* It took an average of 122 days to sell a million-dollar home in the region, down from 131 days a year ago and 140 the previous month.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
That’s great news John! I have several listings coming up in June over the $1m mark so I like to hear good news like this!
thanks,
Andi
The only problem is most of the 55 sales are bank owned or short sales at 60 cents on the dollar. Not exactly a sign of a heathy market.
Statistics lie and liars use statistics. Not accusing anyone of lying, but do want to remind that the stats claiming recovery are contradicted by other sources reporting on the same subject. The reader has the responsibility to look at other sources before forming an opinion. There is money out there; it just that those that have it want to buy at the best price possible, ergo, REO properties and short sales. Maybe that is how they kept their money in these tough times.
I believe it is safe to say, the market has restarted at a new price paradigm. This is a good thing. Regardless of the seller’s motivation, buyers have found a new bottom in the cycle, the best rates in 50 years and typically a coveted location. Unlike soccer, their are no ties in the exchange of real estate!
Is there a price range (say over $2.5) where the sales stop?
Dear John:
Thank you for your excellent article.
We need more jobs to make this economy improve even though the latest Bloomberg article about residential real estate from June 10th shows Denver as the best market in the country.
New jobs!!!
ONwards and UPwards!