This 4,503-square-foot home in Denver sold for $1.24 million in October.
The number of luxury homes for sale in the Denver-area is down substantially, shows a report released today by independent broker Gary Bauer.
“Similar to the rest of the market, the number of active listings in the $1 million and over market is continuing to decrease,” Bauer said. “Sales area also decreasing.”
Indeed, the unsold of inventory luxury homes has dropped even more than the overall market, Bauer’s report shows.
At the end of October, there were 762 high-priced single-family homes and condominiums on the market, a 36 percent drop from the 1,188 available through the end of October 2010. That compares to a 27.7 percent drop for the overall market, shows a previous report released by Bauer.
Kentwood’s report showed similar trend
Last week, Kentwood Real Estate released a report showing a similar trend. But while Kentwood’s report focused on the seven Denver-area counties – Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson – Bauer’s report also included Boulder, Clear Creek, Gilpin and Park counties.
Boulder, in fact, boasted the most home sales last month, with 11 sales priced at least $1 million. It was followed by eight in Denver, six in each of Arapahoe and Douglas, and two in Jefferson. There was one condo sale last month in that lofty price range and it was in Denver.
Edie Marks, a broker with Kentwood, last week said she has noticed the dearth of supply in the price of homes in the stratosphere.
“We need more inventory,” in that price range, she said.
Bauer’s report found that 33 single-family homes in that price range sold last month, a 21.4 percent drop from the 42 in September and a 25 percent drop from the 44 in October 2010.
The average sold price of $1.39 million was 6.3 percent down from September and 3.9 percent down from October 2010. The median price of $1.275 million was down 2.1 percent from September and down 2.9 percent from October 2011. He said the “sweet spot” for luxury homes is between $1 million and $1.5 million, with those priced higher taking longer to sell
What is happening in Denver is part of a national trend, Bauer said. He was reading an article over the weekend about the lack of consumer confidence in the U.S. when it unexpectedly tied that to the luxury market.
“Caution is the name of the game,” when consumers all across the country decide to buy a luxury home, he said.
Contact John Rebchook at JRCHOOK@gmail.com
