Luxury home market up 37% in February

Highlights:

• Buyers purchased 41 luxury single-family homes in the metro area in February, a 36.67% jump from a year earlier.
• The supply of luxury homes is up from January, but down from February 2012.
• Boulder led the charge for luxury sales last month.

Snapshot of luxury supply.
Source: Gary Bauer.

Buyers in the Denver area snapped up almost 37 percent more luxury single-family homes in February than they did in February 2012, according to a report released today by independent broker Gary Bauer.

Bauer’s report, based on Metrolist data, showed that well-heeled consumers purchased 41 homes that cost at least $1 million last month, compared with 30 in February 2012. In January, 39 luxury homes sold.

The total dollar volume for luxury sales in February rose 30 percent to $57.5 million, compared with $44.25 million a year earlier. The dollar volume last month was up slightly from the $55.7 million in January.

“It looks good,” Bauer said. “It is right where I thought it would be.”

The luxury market is showing the biggest percentage gains of any segment of the housing market. However, because the luxury market is so small, it shows big percentage swings with only a few transactions.

Still, it is moving in the right direction, Bauer and others noted.

“What is driving the luxury market is what is driving the entire market,” Bauer said. “Consumer confidence is up and people think now is the time to be putting their money into housing. I expect a tremendous increase in sales next month, when the spring buying season begins.”

Bauer’s report includes the 11-county region of Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

An earlier report by Kentwood Real Estate, which only includes “core” Denver-area counties, showed a similar trend. Kentwood’s report does not include Boulder.

For the single-family luxury sales, 13 were in Boulder County, 10 each were in Denver and Douglas counties, six were in Arapahoe County and one were each in Adams and Jefferson counties.

In the first two months of the year, buyers purchased 80 luxury single-family homes, a 27 percent increase from the 63 in the first two months of 2012. So far this year, buyers have purchased four condominiums which cost at least $1 million, compared with seven in the first two months of 2012.

The active inventory of luxury homes fell 10 percent to 546 at the end of February from 604 a year earlier. By contrast, the inventory of all homes has fallen by 32.7 percent on a year-over-year basis. However, the supply of luxury homes in February increased almost 6 percent from 511 in January. There is a 9.5-month supply of unsold luxury single-family homes on the market, half of where it was a year ago, but up slightly from January, according to Bauer’s analysis.

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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