Luxury home market sizzled in September

Luxury home market sizzled in September .

Luxury home sales up 7.5%.

Luxury home sales set a record for a September.

Luxury home

Luxury home market sizzled last month. Luxury home sales set a record for a September. Source: Kentwood Real Estate.

Buyers purchased 86 Denver-area single-family homes priced at $1 million or more last month, making it the best September on record for luxury sales, according to a report by Kentwood Real Estate.

Luxury home sales rose 7.5 percent from the 80 luxury home sales in September 2015, according to the analysis of REcolorado data by Kentwood.

The luxury market out-paced the overall single-family home market, which showed a year-over-year decline of 4.5 percent, according to a separate report by the Denver Metro Association of Realtors.

Including condos, the overall market fell by 5.55 percent.

The DMAR tracked 11 counties, while Kentwood focuses on Denver-area counties and does not include Boulder.

The Kentwood report showed that total luxury home sale volume last month hit $131.3 million, a 5 percent increase from $124.96 million a year earlier.

In the first nine months of the year, 827 luxury homes traded hands, up 15 percent from 719 in the first nine months of last year.

Luxury condo sales showed few transaction, but a huge percentage increase in transactions, according to Kentwood.

There were nine luxury condo sales last month, a whopping 200 percent increase from three a year earlier.

The condo luxury dollar volume soared 304 percent to $15.35 million last month, compared with $3.8 million in September 2015.

The submarket with the biggest increase in luxury home sales last month was Cherry Creek.

Some 16 luxury single-family homes in Cherry Creek sold last month, a 77.8 percent increase from nine a year earlier, according to Kentwood.

The number of luxury condos that sold in Cherry Creek doubled to 12 from six.

The most expensive condo to sell last month in Cherry Creek and the metro area, was a 3-bedroom, 3-bathroom penthouse with 3,400 square feet in the 250 Columbine mixed-use development. The sale price of $3.695 million equates to $1,087 per square foot.

The Cherry Hills/Greenwood Village submarket also had a strong showing last month.

There were 19 sales in that submarket, a 5.6 percent increase from a year earlier.

The one submarket that showed a big downturn was downtown Denver.

There were 36 condo sales in downtown in September, a 25 percent drop from 48 in September 2015.

The dollar volume dropped ever more, falling 33.6 percent to $15.96 million, from $24 million.

The downtown market remains “stable and strong,” but condos are facing more competition from luxury rental units, said Deviree Vallejo, a broker with Kentwood City Properties.

“A large number of new rentals have come on line in the downtown market that compete directly with for-sale condos,” Vallejo said.

However, it is a good time to be shopping for a condo downtown, she said.

She noted there is more inventory in downtown this year than last year, “giving buyers more to choose from.”

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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