Luxury home sales up 35%, YTD

Highlights:

  • Kentwood releases luxury housing report.
  • Four fewer homes sold in October from October 2012.
  • YTD, luxury sales up 35%

 

This Cherry Hills estate sold for $2.9 million in October.

This Cherry Hills estate sold for $2.9 million in October.

Luxury home sales in the Denver area dipped on a year-over-year basis in October for the first time this year.

A report by Kentwood Real Estate showed that 52 homes priced at $1 million or more closed in October, a 7.1 percent drop from the 56 in October 2012.

By contrast, the overall market saw sales rise by 13 percent in October from a year earlier.

However, in the first eight months of the year, luxury home sales are up 34.6 percent, compared with a 20.6 percent rise for the entire market.

Through October, well-heeled consumers bought 591 luxury homes in the counties of Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson.

During the same period last year, buyers bought 439 luxury homes.

The year-to-date dollar volume showed a similar trend, rising 32.9 percent to $896.6 million from $674.6 million.

In October, the closed volume was $77.2 million, down 6.1 percent from $82.2 million in October 2012.

The most expensive home to sell last month was a 6,388-square-foot home on 1.8 acres in Cherry Hills that fetched $2.9 million. That is 25.6 percent less than a $3.9 million home that was the most expensive to trade hands in October 2012.

Christy Owen, a broker at Kentwood-DTC, noted that one month does not make a market, and October’s performance is not an indication the high-end market is in trouble.

“Oh, no, it is not a trend at all,” she said. “It is just one month.”

Also, there is only a four-home difference between sales last month and in October 2012, she noted.

Far more important is the strong upper-end activity for the first eight months of the year, she said.

“In fact, I am just as busy now as I have been all year,” said Owen, who estimated she has sold 35 percent more homes this year than she did during this time last year.

Christy Owen

Christy Owen

She said the most expensive home she sold this year was for $3.1 million.

“I had one under contract for $5.9 million, and that deal fell part, at we resurrected it at $5.5 million,” she said. “It was a really good deal at that price, but it just fizzled.”

Owen said it is the usual suspects that continue to be the hot spots for high-end housing.

“It is all the same ones – Highland, Hilltop, Country Club, Polo Club. Many of the neighborhoods near or in downtown. And I think Cherry Creek has really rebounded, too.”

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.

 

 

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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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Comments

  1. Excellent points! Most economists do not reflect the effect of the fear of the Congressional shut down and the shut down. Consumer confidence eroded with sales. Once the shut down was over the sales jumped again.
    Auto sales in the last two weeks of October were fantastic too!
    As long as the Congress can settle budget issues we will have a prolonged recovery.
    Let’s stay in front of our Congressional leaders and encourage them to take care of the government appropriately! No mkore shut downs!
    ONwards and UPwards with economic recovery!

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