- DMAR releases report.
- Move-up home sales strong.
- Move-up homes branded as ‘Signature” and “Premier” properties.
Move-up home sales were strong in November and the first 11 months of the year in the Denver area.
Much like the local luxury market, as InsideRealEstateNews.com report on Monday, homes priced from $500,000 to just under $1 million out-also performed the overall market by a wide margin as far as a percentage pick-up in sales, according to a Denver Metro Association of Realtors report released last week.
Home priced between $750,000 to $999,999 and between $500,000 to $749,999, known as “Signature” and “Premiere” homes, respectively, weren’t quite as strong as the luxury market, defined by DMAR as homes priced at $1 million or more.
Luxury single-family homes in November showed a 14.3% jump from November 2013.
Signature homes weren’t far behind, with a 13.3 percent again from November 2013.
Premier properties showed a 0.81 percent drop last month from November of last year, which is still far better than the 8 percent drop for the overall single-family home market.
In the first 11 months of the year, there 914 Signature homes traded hands for a total of $773.4 million, a 6.4 percent increase in transactions and a 6 percent increase in dollar volume from the same period last year, according to DMAR.
Homes also sold faster.
Single-family homes sold in average of 89 days, a 11 percent drop from 100 days during the first 11 months of 2013.
Condos in the Signature price range did even better.
The 147 Signature condo sales in through November represented a 70.9 percent increase from the 86 in the first 11 months of 2013.
Premier condos also showed a much greater percentage gain in sales than single-family homes on a year-to-date basis, the DMAR report shows.
There were 501 Premier condo sales, a 119.7 percent jump from the 228 in the first 11 months of the year.
By contrast, the 3,650 Premier single-family home sales represented a 4.6 percent increase from the 3,488 in the first 11 months of last year.
“My assumption is that people are finally starting to get some equity in their homes and are confident and their jobs and they want to take advantage of these low mortgage rates and move up,” said Jill Schafer, a DMAR Market Trends Committee spokesperson.
She said she was surprised by how much high-end homes rose in November and on a year-to-date basis.
“I knew from talking to other brokers in my office that sales were up, but I didn’t realize it was by this much, which was pretty huge,” Schafer said.
She said that while the high-end markets are generally considered areas such as Cherry Hills and Greenwood Village and Denver neighborhoods such as Crestmoor and Hilltop, there also has been an uptick in high-end sales in other parts of the metro area.
“It’s interesting how many expensive homes are being sold up north in places like Longmont and Erie,” she said.
The DMAR report covers an 11-county swath.
Move-up buyers moving on up
Typically, there would be a bigger percentage jump in the Premier price range than in the Signature, as the higher the price, the fewer the buyers, she noted.
“I think what is happening is that the move-up buyers are not finding what they want,” at the lower price range, she said.
“The person who used to be looking for a $350,000 home is now looking at $500,000 homes,” Schafer said.
“And people who might have been looking to buy a $650,000 home a couple of years ago, now are looking for a $800,000 home,” she said.
“Everything is moving up,” she said.
There is an incredible amount of demand for homes on the lower-end of the move-up market, she said.
“It is just crazy competitive below $500,000,” Schafer said.
If there were more homes for sale in the Premier market, there would be more homes being sold, she said.
“Really, there is not enough of a supply in every price range,” Schafer said.
“I have a number of potential buyers that are not seeing anything listed in their price range which motivates them to buy,” Schafer said.
“Nobody want to sell, if they can’t find what they are looking for. It’s circular. Because they can’t find anything, they won’t put their homes on the market. And because they don’t put their homes on the market, other buyers can’t find what they want.”
The DMAR report, based on Metrolist data, covers the counties of Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.
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 Co. and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.