August luxury homes sales record

August record for that month for luxury home sales.

August luxury home sales sizzled, while the overall market cooled.

Most expensive home sold last month fetched $5.3 million.

August

A snapshot of luxury single-family homes in August.

Luxury single-family home sales in the Denver area last month soared to an August record, according to a new report.

For the first time in an August, more than 100 homes priced at $1 million or more traded hands, according to an analysis of REcolorado.com data by Kentwood Real Estate.

REcolorado is the largest MLS in the state.

There were 108 luxury home sales in the core Denver area, not including Boulder, according to Kentwood.

That is a 9.1 percent increase to the 99 luxury home sales in August 2015.

A separate report by the Denver Metro Association of Realtors, which does include Boulder and a number of other counties, showed 188 single-family luxury home sales, a 13.4 percent year-over-year increase from 104 in August 2015.

The luxury housing market sizzled in August, while the overall market pulled back slightly. Overall, all home sales dipped 1.4 percent in August from August 2015, according to DMAR.

Also for the first time ever, more than $1 billion in luxury homes were sold in the first eight months of a year, according to Kentwood.

The closed dollar volume for single-family, luxury homes was $1.1 billion, an 18.4 percent increase from $952.9 million in the first eight months of 2015, according to Kentwood.

The biggest percentage gain was in the Cherry Creek area, although the numbers were small.

There were 13 single-family owns that sold for $1 million last month, a whopping 160 percent jump from the five in August 2015.

Luxury condo sales in downtown Denver, by contrast, experienced a modest year-over-year gain in August.

There were 34 downtown condo sales, a 3 percent increase from 33 sales in August 2015.

The closed dollar volume in downtown last month was $17.2 million, up 5.8 percent from $16.2 million in August 2015.

“On the surface, the downtown condo market appears to be stable,” said Stan Kniss, a broker associate with Kentwood City Properties.

“Comparing August 2015 to August 2016, the key indicators (number of sales, sales volume, average price, etc.) remain largely the same,” Kniss pointed out.

There has been a leveling off in the market in the second quarter from the first quarter, he said, with the average sales prices down by just more than four percent, and sales volume down by 11 percent, on a year-over-year basis.

“I suspect this is a normalization and very likely a good thing for the long-term health of the downtown market,” Kniss said.

August

The great room in a home that sold for $5.3 million in August.

“Denver is still on top of the country’s most dynamic housing markets, and we’ve seen a strong migration into the downtown neighborhoods,” he added.

However, at the higher end, sales have slowed.

“A word of caution…while the lower to mid-range segments of the market are trading well, and for good numbers, the upper end of the market over $1 million and more specifically over $2 million, have shown a much lower level of liquidity,” Kniss said.

The most expensive condo to trade hands last month was a 3-bedroom, 3-5 bathroom, unit with almost 5,000 square feet in the Four Seasons Private Residences Denver.

“In the past 275-plus days, there has been just one sale over $2 million,” Kniss said.

“Some of this can be seen as a result of a seasonal slowdown, or the struggling oil and gas industry.  I anticipate more of the same over the course of the next few months, and that things will return to normal in the first quarter of 2017,” he said.

The most expensive home to sell last month was a 6-bedroom, 6-bathroom home in the Polo Club area with 9,560 square feet of space.

Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 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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