Denver luxury home sales up 48%

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The number of million dollar-plus homes sold in the Denver area last month remain small, but the the percentage gain from January 2010 was huge.

Some 40 homes sold for $1 million or more in the Denver area in January, a 48 percent jump from the 27 that sold and closed in January 2010, shows a report released today by Coldwell Banker Residential Brokerage in Colorado. An earlier report by independent broker Gary Bauer also showed an increase, although Bauer only tracked 34 homes in that seven-figure price range changing hands in the Denver area in January. Coldwell Banker’s report also showed a 21.6 percent drop from the 51 sales in December, although part of that decline could have been for seasonal reasons.

Bucking the trend

In any case, the luxury market bucked the trend of the overall market. In January, there were a total of 2,156 closings, an 8.4 percent drop from the 2,353 in January 2010. All of the sales figures are based on Metrolist Inc. data, which publishes the MultiList.

Coldwell Banker found other encouraging trends at the upper end. Luxury homes sold at a faster pace with the average days on market dropping to 144 from 169 last year, which equates to about a 15 percent faster sales clip.  And sellers received more than 90 percent of their asking price on average, up from 87 percent in January 2010.

The median sale price of million-dollar homes edged 3.5 percent lower in January from the previous year to $.284 million. But the median was up 2.7 percent from December.

Confidence returning

“The new year is off to a good start for the luxury market with a lot of interest by buyers who have been sitting on the fence over the past couple of years,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. “Consumers are feeling more confident every day that the economy is picking up and the job market is improving. That translates into greater confidence in real estate investments.”

Mygatt added that buyers of high-end homes are also greatly influenced by the financial markets, and with the stock market continuing to gain strength, many investors have the capital to move ahead with larger real estate purchases.

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

  • The most expensive sale in the Denver Metro Area in January was a seven-bedroom, nine-bath 9,591-square-foot home in Cherry Hills Village that sold for $4.8 million.
  • Denver boasted the most million-dollar sales with 11, followed by Boulder with seven, Cherry Hills Village with five, and Castle Rock and Greenwood Village with four each.
  • Sellers on average received 90.46 percent of their asking price, up from 87 percent a year ago and 90.32 percent the previous month.
  • It took an average of 144 days to sell a million-dollar home in the area, down from 169 days last year and 148 days the previous month.

Contact John Rebchook at JRCHOOK@gmail.com

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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