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Luxury home sales up 34%

Highlights:

  • Kentwood releases November report on luxury home sales.
  • YTD, dollar volume up 26%, transaction up 33.9%
  • YOY, activity also rises.
This 6,785-square-foot Denver home with 5-bedrooms and 4-bathrooms, sold in November of just under $3.7 million.

This 6,785-square-foot Denver home with 5-bedrooms and 4-bathrooms, sold in November for just under $3.3 million.

Buyers in the Denver area paid $970.5 million for 672 single-family homes priced at $1 million or more in the first 11 months of the year, according to a report by Kentwood Real Estate.

That is a 34 percent jump from the 502 transactions and a 26 percent increase in the $770.02 million booked during the first 11 months of 2012.

Luxury homes also  are selling faster than they did last year.

The average days on the market dropped 15.9 percent to 159 days from 189 in 2012.

In November, there were 49 homes sold in the Denver area, an 8.9 percent increase from November 2012, when 45 homes in that lofty price range sold,  according to the analysis of Metrolist data by Kentwood.

The closed sales volume in November was $73.99 million, 1.2 percent more than the $73.14 million in November 2012.

Luxury homes sold 32.1 percent faster last month, with the average days on the market dropping to 131 from 193 a year earlier. The highest sales price for a home in November was $3.269 million for a house in the Country Club neighborhood in Denver.

Jennifer Markus.

Jennifer Markus.

The report accurately reflects what she has seen the street…or perhaps the high-end boulevard and cul-de-sacs in places such as Castle Pines Village, Cherry Hills Village and Greenwood Village, said Kentwood broker Jennifer Markus.

“It’s been a killer year,” for luxury home activity, she said.

Castle Pines Valley, which was hard hit during the Great Recession, has recovered nicely, for example.

“Castle Pines Village is on fire,” Markus said. “We have seen more sales in the past 15 months then we have seen in the past four or five years.”

She has noticed a younger demographic being attracted to Castle Pines Village.
For one thing, the top schools in Douglas County are comparable to those in the Cherry Creek School District, she said. Also, the perception is that is a long way from job corridors is disappearing.

“The truth is, you are only 11 minutes from the Denver Tech Center,” she said.

On Sunday, she showed a $2 million home in Castle Rock. “I wouldn’t be surprised if I have it under contract by Christmas,” Markus said.

She also said that she is seeing a lot of executives in the oil and gas industries, as well as in high-tech relocate to the Denver area.

“During the spring and summer, things were just insane and I think we had a stronger fall than normal,” Markus said. “This current cold snap is slowing things down a bit,” although she said she expects the trend of executives moving to Denver from places such as Chicago, Boston, Dallas, Houston and California to continue.

A lot of out-of-state buyers are drawn to Castle Pines Village.

“With the trees, the topography and the mountain views, it really gives you the Colorado experience,” she said.

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.