The number of luxury homes on the Denver-area market have dropped by more than a third in the first 11 months of the year, when compared with the same period in 2010, according to a report released on Tuesday.
“Like every other segment of the market, the inventory of luxury listings is down in double digits,” said Gary Bauer, an independent broker who analyzed sales of homes priced at $1 million or more in the 11-county area.
“In this case, the inventory of residential (single-family homes) are down 34 percent and condos are down 22 percent,” Bauer said.
Bauer’s report shows that there are currently 650 luxury single-family homes on the market, compared with 979 during the same period last year. There are currently 74 condos priced at $1 million or more for sale, compared with 97 in the counties of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, Gilpin, Jefferson and Park. Last Friday, Kentwood Real Estate released a similar report that focused on the core Denver-area counties, and did not include Boulder, Gilpin or Park counties. Both reports were based on Metrolist information.
In the first 11 months of the year, a total of 463 single-family homes sold, the same as last year, while the dollar volume was down 1 percent to $704 million, compared with $712 million in the first 11 months of 2011. The average sales price was unchanged at about $1.5 million.
In the first 11 months of the year, 34 luxury condos traded hands, up 10 percent from the 31 last year. The condo sales volume as $48 million, compared with $46 million last year, a 4 percent increase. The average sales price this year as $1.4 million, down 7 percent from $1.5 million in 2010.
“Prices have been relatively stable,” Bauer said. “The sweet spot of the luxury market now is about $1.5 million.”
Bauer said those paying $1.5 million now, would likely have paid north of $2 million during the peak of the market. Buyers are purchasing them today for less than the replacement cost. That is, if they build them from scratch, it would cost more then $1.5 million.
“I do think with the inventory decreasing, we are going to see continued pressure on prices,” Bauer said.
The highest price paid this year for a single-family home was $8.2 million was a five-bedroom, 12,298-square-foot house. The most paid for a condo was $2.475 million for a three-bedroom, 2,691-square-foot unit.
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