John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... Take a poll at the end of this blog.
The luxury home market in the Denver area is on a roll, shows a report released today. Luxury home sales in Denver metro area in Juner ose to their highest level in nearly two years, according to Coldwell Banker Residential Brokerage.
Some 67 homes sold for more than $1 million in June, up 22 percent from May and 3 percent from June 2009 when 55 and 65 properties sold, respectively. It was the highest level for luxury sales since 89 properties changed hands in August 2008.
The median sale price of seven-figure homes in June was $1.34 million, up 4.7 percent from May’s $1.28 million median, but down 2.8 percent from the median a year ago of $1.38 million. Home sellers received an average of 90 percent of their asking price, down from 93 percent in May but up from 87 percent last year.
The figures were based on Multiple Listing Service data of all homes sold for more than $1 million in the Denver metro area.
“The latest figures show that the high-end market in the Denver metro area continues to stabilize and improve,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. “With interest rates at historic lows and sellers pricing their homes very competitively, buyers have responded.”
Mygatt cautioned that some of the sales could be related to the federal tax credit, which initially required buyers to be under contract by April 30 and close by June 30. Buyers now have until the end of September to close on their homes that were placed under contract by April 30. Closed sales in June reflect transactions that were typically initiated a month or two before. With the credit expiring, the housing market could see a drop-off in the coming months, Mygatt said.
Market poised for a breather
“Between the expiration of the federal tax credit and the normal slowdown during the summer as people leave for vacations, it’s possible that the market may pause to catch its breath,” Mygatt said. “But I’m encouraged by the progress we’ve made so far this year, especially considering where we were just a little over a year ago.”
Key findings from this month’s Coldwell Banker Residential Brokerage luxury report:
* The most expensive sale in the Denver metro area in June was a six-bedroom, five-bath 7,403-square-foot home in Denver that sold for $3.95 million.
* Denver boasted the most million-dollar sales with 17, followed by Boulder with 13, Castle Rock with seven, Cherry Hills with six and Greenwood Village with five;
* It took an average of 115 days to sell a million-dollar home in the region, down from 122 days the previous month but up from 103 days a year ago.
(For an earlier story that addressed this topic, please read Million-dollar home market shows life.)
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I hope/wish this to be true.
Not arguing against the data, but am not sure that “past performance will be a measure of future performance”.
Don’t hang the “Mission Accomplished” banner yet. My guess is, in Aug/Sept, you wont see any report from Coldwell Banker showing 1M+ homes sales fell off a cliff. Hopefully, John will do the research and report the numbers.
Real Estate is on sale in Denver. Every buyer loves a bargain, and that’s what the buyer’s perception is right now. If we run out of bargains, things will slow down again, but if we have sellers in sync with the new price paradigm, then we could see a very strong finish to 2010.
The problem is not running out of bargains, it’s running out of buyers. You need the 1st time buyer in order to buy the current homes the 1M+ buyers need/want to sell to move up. Unlike the low end, Investors won’t support the high end market, it need to come from final demand end users.
Seems like if you don’t have a job; you can’t buy a house in any price range. That is, if you have to have job in order to buy. For those that have a job or don’t need a job to buy it is a paradise filled with opportunity. That is if you think the bottom of the market has been reached. Our economy is far from reaching any sort of stability; the starters gun for those that have a job or want to keep their wealth. Very simply the demand side of the equation has to be solved before any real recovery can occur. As Washington fumbles; the real estate market crumbles. Similar to Nero; the fiddle and that darn fire.