- Kentwood releases luxury housing market report.
- Luxury homes up in September and YTD.
- A Cherry Hills home sold for $5.3 million.
In the first three quarters of the year, the luxury housing market in Denver has shown almost a 40 percent jump in transactions and a 37.5 percent increase in dollar volume, according to a report by Kentwood Real Estate.
The report, which tracks the sale of single-family owns that sold for at least $1 million, shows that in the first nine months of the year, buyers paid $814.35 million for 536 homes, compared with $592 million for 383 homes in the same period in 2012.
The luxury market showed a bigger year-over-year percentage increase in dollar volume than the overall market,.
In the first nine months of the year, the overall market showed a 32.4 percent increase in dollar volume.
The luxury market accounted for about 7.2 percent of the $11.3 billion paid for all single-family homes sold through September, a record amount for the first nine months of the year, according to Metrolist.
In September, 51 luxury homes sold, an 18.6 percent increase from September 2012, according to Kentwood, which tracks sales in the counties of Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson counties.
The closed dollar volume last month was just under $80.1 million, a 5 percent increase from the $76.3 million in sales in September 2012.
The most expensive home to sell last month was an 8,842-square-foot home on 1.9 acres in Cherry Hills Village. That four-bedroom, seven-bathroom home sold for $5.3 million.
Luxury homes also sold faster last month than in September 2012.
The average days on market for a luxury sale fell 20.2 percent to 130 from 163, according to Kentwood.
The high-end market in the Denver are remains brisk, but like the overall market, is not as frenzied as it was earlier in the year, said veteran Kentwood broker Jim Nussbaum, who is in his 43rd year in the real estate business.
“Overall, I think the luxury market is doing pretty well, although I think it probably peaked around May or June,” Nussbaum said.
“The inventory is up a little bit, which is good because buyers have more to choose from,” he added.
Last Thursday night, Nussbaum sold a home for just under $1 million.
“It had been listed for $1.05 million, but it sold in the high $900,000s,” Nussbaum said.
In exchange for taking a slightly lower price, the sellers didn’t have to do things such as upgrade the carpets, he said.
“All and all, I would say it was a good deal for the buyer and the seller,” Nussbaum said.
“It also was an all-cash deal,” Nussbaum said.
Nussbaum, who expects to sell between $20 million and $25 million in homes this year, said about one of every five luxury homes he is selling is an all-cash deal.
Some observers believe the government shutdown will give even more of an advantage to cash buyers, as it could take longer for government-backed loans to close.
However, Nussbaum said he doesn’t necessarily think that will result in an increase of home buyers at the high-end.
“I find a lot of people who can pay cash still would rather take out a loan for the tax write-off,” as well as having the money available for other investments, he said.
Interested in buying a luxury home in the Denver area? Please visit COhomefinder.com.
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