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Denver Metro Area Sees Growth in Luxury Home Sales

Luxury Home ColoradoThe luxury home market is something that tends to fluctuate quite wildly from year to year and from region to region, but the fall of 2014 got started on the right foot in the Denver metro area. Sales of Colorado luxury homes climbed by 4% for the first nine months of the year when compared to the same period in 2013. Projections have this trend continuing through the remainder of the year, which means that 2014 might be a good year for the Colorado luxury market.

Behind the Numbers

The numbers being reported by the Denver Metro Association of Realtors are based on the number of homes which closed in the first nine months of this year. The specific search focused on homes that had a price of $1 million or more. All told, 633 homes and condos that met that criterion were sold. Luxury condominiums is up even higher, seeing a 50% increase over the last year. The definition of “luxury condominium” in this case is a condo that sells for $750,000 or higher. These sales have seen a sharp increase in the last few years as a whole, nearly doubling since 2012. It is also noteworthy that these numbers reflect an aggregate total and not just what the market saw in the month of September.

What does it all Mean?

The rising sales right now mean that you will be more likely to be able to sell a property if you put it on the market. It does not, however, guarantee that your home will sell for more than it would in another year. While the number of homes being sold has increased, the average price of those homes has stayed at about the same amount. In other words, there are more people out there looking to make a luxury home purchase but they are still looking to get a good bargain on their new homes. The average luxury home in the Denver area right now is selling for about $1.4 million, so that’s very good news if you want to sell and have a property that fits in around that value.

What about Buyers?

If you are on the buyer’s end of the market, these numbers illustrate that you might see a little bit more competition when you go to make a luxury home purchase in Colorado. However, you shouldn’t be discouraged. The fact that the average price has remained the same even as the number of purchases increases could mean that the overall quantity of homes has increased. While you should keep the market in mind and realize that there are plenty of other buyers out there if you try to hardball a seller, you also shouldn’t force yourself to accept an offer that you don’t feel comfortable with. Even with sellers benefitting these days, there are still plenty of options for buyers.

While more investigation into the context of these numbers will help, one thing is for sure: the luxury housing market in Colorado is experiencing an upswing. How long this lasts is anybody’s guess, but things look very good for the near future at least.

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