The luxury home market in the 11-county area that includes Boulder, as well as the Denver area, will top $1 billion in sales this year.
A report released today by independent broker Gary Bauer shows that in the first eight months of the year, buyers paid $908.18 million for 611 homes priced at $1 million or more. Of those, 563 were single-family homes that sold for a total of $835.4 million and 48 condos that sold for a total of $72.8 million
That is almost $90 million more than the $819 million buyers paid in 2011 for 544 homes, Bauer’s report shows. The vast majority of the luxury sales last year — 506 of them — were for single-family homes. Only 38 condos in that price range sold in 2011..
Bauer said that luxury home sales will almost certainly exceed $1 billion in total sales for the year by the end of November.
In October, buyers paid $92 million for 64 single-family detached homes, basically doubling activity from October 2011, when 33 homes were sold for $44.7 million.
There were also five condo sales for a total dollar volume of $8.1 million in October, compared with one for $1.25 million in October 2011. The average price of a condo that sold last month was $1.62 million, higher than the $1.44 million average for a single-family home.
The median price of a condo was $1.4 million, compared with a median price of just under $1.3 million for a single-family home. The average price per square foot was $353 and $479, for single-family homes and condos, respectively.
An earlier luxury report by Kentwood Real Estate showed a similar trend. Both Bauer and Kentwood used Metrolist data for their reports.
“The luxury market is very strong,” Bauer said. “I really think it is an extension of the overall market, which is showing unusual seasonal strength. I think this trend is going to continue.”
Bauer said that he thinks some sellers of high-end homes may be motivated to sell before the end of the year in case there are tax-law changes that would make it less attractive in the future. Buyers also might consider it more advantageous to buy this year than wait, in case there are any surprises in tax laws or lending programs next year, he said.
Also, there is no guarantee that the current historical low interest rates will stay in place, he said.
“I think sellers are more realistic about pricing homes,” making them more attractive to buyers, he said. Buyers who can afford homes priced at $1 million or more believe they are getting good deals, he said.
Bauer’s report includes the counties of Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin Jefferson and Park.
In October, 15 of the single-family home sales were in Denver, 14 were in Arapahoe County, 12 were in Boulder County, 11 were in Douglas County, 10 were in Jefferson County, and Adams and Elbert counties each had one.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.
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