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Kentwood: Luxury home dollar volume rises



  • Kentwood Real Estate releases luxury home report.
  • June luxury sales flat, but dollar volume rises.
  • Cherry Hills, Greenwood Village sales up.
Snapshot of luxury home sales market.

Snapshot of luxury home sales market.

Luxury home sales were basically flat in June, compared with June 2013, but the dollar volume for single-family homes that cost $1 million or more rose 6.6 percent on a year-over-year basis, according to a report by Kentwood Real Estate.

The analysis, based on Metrolist data, showed that 83 luxury homes sold last month, a 2.4 percent decline from the 85 in June of last year.

The Kentwood report includes the “core” counties in the Denver area, but does not include Boulder.

Despite two fewer transactions, the dollar volume for luxury home sales in June rose about $7.4 million to $135.86 million from $128.42 million in June 2013.

The average sales price in June rose 9.1 percent to $1.65 million from $1.51 million in June 2013.

The highest sales price last month was $5.25 million, 64.1 percent more than the highest sales price of $3.2 million in June 2013.

Luxury homes also sold faster than a year ago.

Luxury homes spend an average of only 79 days on the market in June, a 53.8 percent drop from 171 days in June 2013.

Homes in Cherry Hills Village and Greenwood Village also accounted for a bigger part of the luxury market last month than in June 2013.

Last month, 27 homes sold in those two submarkets, a 35 percent jump from the 20 that closed in June 2013, according to Kentwood.

Cherry Hills and Greenwood Village sales accounted for 32.5 percent of the entire luxury market in June, compared with 23.5 percent in June 2013.

Sales volume showed a similar trend.

Sales of luxury single-family homes in Cherry Hills and Greenwood Village hit $50.5 million last month, 54.6 percent higher than the $32.68 million a year earlier.

Homes in Cherry Hills and Greenwood Village accounted for 36.9 percent of the total luxury home dollar volume in June, compared with only 25.4 percent in June 2013.

Chuck Gargotto, a broker with Kentwood DTC, recently sold four homes in Cherry Hills Village that ranged in price from $2.4 million to $2.9 million.

“They all sold fairly quickly and close to full price,” he said.

“Interestingly, three of them sold for all cash, with no appraisals,” he said.

The buyers tended to be empty nesters who wanted to be close to their grandchildren. Two of the buyers were from Chicago

“The luxury market seems to very strong up to $3 million,” Gargotto said.

“Once you cross over $3 million, it starts to slow down,” he said.

“The big, 14,000-square-foot homes still are not moving that fast, but we are seeing a lot of interest in the 6,000 to 7,000 square foot homes on about an acre,” he said.

Sandy Weigand

Sandy Weigand

The sellers of the four homes “felt it was a good time to be putting their homes on market. And we still have a lack of good inventory in that price range, so they benefitted from that.”

Greenwood Village is hotter than Cherry Hills Village, said Sandy Weigand, also a broker with Kentwood DTC.

“We are seeing more inventory in Greenwood Village than in Cherry Hills Village,” Weigand said.

Cherry Hills Village homeowners have been less willing to sell their homes than those in Greenwood Village, although that is slowly starting to change, she said.

In Greenwood Village, the market is strong for homes priced below $1.5 million, she said.

She said there are more buyers than sellers and the market could definitely use more sellers.

“When you talk to homeowners they say there is nothing we like and no where to go,” if their home sells quickly, she said.

“It’s a Catch-22.”

“There have been some pretty significant sales in Cherry Hills and Greenwood Village, so I’m not surprised,” said Bill Wilbur, a broker with Kentwood DTC.

He said a number of former “horse” properties in Cherry Hills Village have been converted into large estates.

“It used to be a lot of properties in Cherry Hills Village and some parts of Greenwood Village had barns on them,” he said.

But, increasingly, the barns have come down and replaced with sprawling homes.

“When you build a 17,000-square-foot home on the land, it takes up a lot of the property,” he said.

Wilbur, however, specializes in selling real horse properties, primarily in Douglas and Elbert counties.

“We’re starting to see some movement in the horse properties; it is starting to improve,” he said.

“We haven’t seen that for several years.”

And Weigand said the increase in sales in Greenwood Village and Cherry Hills Village has not diminished the interest in downtown.

“Cherry Creek is hot and downtown is really hot,” Weigand said.

A lot of empty nesters leaving big homes along the southeast corridor want to move downtown, typically moving into homes far smaller than their big single-family houses in the suburbs.

“I think empty nesters have a younger mindset than they have had in previous generations,” Weigand said. “They want the hip, exciting lifestyle of living downtown.  Today’s empty nesters are more open to change than I have ever seen.”

Meanwhile, in the first half of the year, there were 346 luxury homes sold in the entire market, a 7.8 percent increase from 321 in the first six months of 2013, according to Kentwood.

Closed sales volume for all luxury single-family homes rose 12.9 percent to $546.6 million from $484.0 million in the first half of 2013.

In the first half of the year, it took an average of 114 days to sell a luxury home, a 41.5 percent drop from 195 days in the first six months of 2013.

As far as condos priced at $1 million or more, only four traded hands last month, a 50 percent drop from the eight in June 2013.

Total luxury condo sales dollar volume was down almost as much, falling 46.6 percent to $6.32 million from $11.8 million.

However, a condo sold for $2.725 million last month, which is 31.3 percent higher than the most expensive condo that sold in June 2013, which fetched $2.075 million.

Luxury condos also sold much faster in June than in June 2013.

The average days on the market for the luxury condos was 130, down 50.4 percent from 262 days in June 2013.

Through June, 18 luxury condos sold, down 14.3 percent from the 21 in the first six months of 2013.
However, the total sales volume rose 2.3 percent to $32.01 million from $31.3 million in the first half of 2013.

In total, there currently are $797 million in luxury single-family homes and condos on the Denver-area market.

Kentwood Real Estate has a 16 percent market share, with $130 million in luxury listings.

In Greenwood Village and Cherry Hills Village, Kentwood has a 38 percent share of the 95 homes and 45 parcels of the land that are on the market.

Interested in buying a home in Cherry Hills Village? Please visits COhomefinder.com.

Interested in buying a home in Greenwood Village? 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.