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Coldwell: Luxury market takes a breather

Highlights:

  • Coldwell Banker releases February luxury home report.
  • Luxury home sales down by 4.4% from February 2013.
  • Low inventory the culprit.
This 6,357-square-foot, 7-bedroom, 7-bathroom home is on the market for $2.195 million.

This 6,357-square-foot, 7-bedroom, 7-bathroom home is on the market for $2.195 million.

The Denver area’s  luxury housing market took a breather in February with sales dipping from a year ago and the median sale price fractionally lower, according to a report released today by Coldwell Banker Residential Brokerage.

The figures are based on Multiple Listing Service data of all homes sold for more than $1 million last month in the Denver Metro Area.

A total of 42 luxury homes changed hands in February, a 4.4 percent drop from 45 February 2013, due in part to a lack of inventory of homes on the market. Sales were even with January’s level.

The median sale price last month was $1.25 million, off 3.3 percent from February 2013. The median also dropped from January’s level of $1.389 million.

Other key market indicators last month were mixed. Homes sold faster on average than they did a year ago, but sellers received a slightly lower percentage of their asking price on average. There were also three multi-million-dollar sales in February compared to four in February 2013.

“The lack of inventory in the Denver metro area is driving everything else in the luxury market just as much as the overall housing market,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage. “This is going to be the most important issue for the market this year.”

Mygatt said that he’s hearing from agents throughout Colorado that a shortage of good listings is impacting the health of the market.

“It is as true in Colorado Springs as it is in Fort Collins or Breckenridge or Vail,” he said. “Wherever I go, no matter what the market, brokers say the biggest single challenge is a lack of inventory. It’s not that there isn’t demand.   People want to buy, but they just don’t have enough quality listings to choose from.”

Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:

  • The most expensive sale in the Denver Metro Area last month was a six-bedroom, seven-bath approximately 8,200-square-foot home in Cherry Hills Village that sold for $3.1 million;
  • Denver boasted the most million-dollar sales with 13, followed by Boulder with eight and Cherry Hills Village with three;
  • Homes sold in an average of 117 days on the market, down from 186.8 days a year ago and 123 days the previous month;
  • Sellers received an average of 95 percent of their asking price, down from 95.8 percent a year ago and even with the previous month.

Interested in buying a luxury home? Please visit COhomefinder.com.

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.