Luxury home market gets off to a slow start

Highlights:

  • Kentwood releases luxury housing report for January.
  • Sales are down, but prices are up.
  • Low supply to blame.
This home in Cherry Hills Village sold in January for $5.85 million.

This home in Cherry Hills Village sold in January for $5.85 million.

The Denver-area luxury home market showed a 16 percent drop in sales in January from January 2013, but only a 4.2 percent drop in sales volume.

A report by Kentwood Real Estate shows that 26 homes priced at $1 million or more sold last month, compared with 31 in January 2013, a 16.1 percent drop.

The total sales volume was $42.7 million, down from $44.6 million in January 2013.

The average sales price last month rose 14.2 percent to $1.64 million from $1.4 million a year earlier.

The most expensive home to sell last month was a $5.85 million mansion in Cherry Hills Village, which has 14,638 square feet of space, eight bedrooms and 10 bathrooms. That is 42.7 percent higher than the most expensive home to sell in January 2013, which was priced at $4.1 million.

Realtors said the luxury market has slowed because of a lack of supply, not a lack of demand.

Homes last month at a much quicker pace than in a year earlier.

The average days on the market last month was 108, 48.3 percent lower than the 209 average days on the market in January 2013.

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

The report shows there currently 426 single-family homes priced at $1 million or more on the market and 86, or 20.3 percent of them, are under contract.

There are 26 luxury condos on the market and four of them, or 14.4 percent, are under contract.

Want to know what luxury homes are available? 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.

 

 

 

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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. The report shows there currently 426 single-family homes priced at $1 million or more on the market and 86, or 20.3 percent of them, are under contract.

    At January’s sales pace there is a 16.3 month supply of homes on the $1M market.

    • This number is much weaker than it looks on the surface. Since prices have gone up 8-10% over the last 12 months, homes that were selling in Jan 2013 the 900s should now be selling for over $1M. Since home don’t fall out of this pool on the high end, there should be more homes selling this year for over $1M, not fewer.

      • All $1M+ houses are bad investments. Maybe people are simply “wising up” to the economics of poring millions into a neg cash flow house. Have you looked at the apartment numbers though? Median sales price/unit is up over 50% during the past two years in central Denver.

  2. Jan and Feb 2014 just have not had the same buyer sense of urgency that Jan and Feb 2013 had. In early 2013 I suspect buyers were trying to beat other buyers to market before prices spiked. I think buyers are 2014 are not much concerned about a price spike, and thus are buying according to the normal market cycle of waiting till March.

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