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More Growth for Luxury Homes in the Denver Area

Sold SignThe Denver luxury home market, which has been booming as of late, continued to grow in October, according to a report from the Denver Business Journal. This comes on the heels of reports that luxury home prices around the world have slowed to a halt. That means that Denver’s market is bucking the trend of a slowing industry and also that potential buyers can expect to get better deals on these homes than they could a year ago.

Examining the Rise in Sales

The month of October 2014 saw a grand total of 62 luxury homes in the Denver area which came under new ownership. The criteria used for this measurement was residential houses that sold for $1 million or more. Comparatively, October 2013 saw 50 such transactions. This represents a growth of 24% when it comes to the total number of sales. Total revenue was similarly up, with 2014 bringing in $87.3 million in October luxury home sales compared to the same month a year ago, which brought in $73.7 million. The actual total cost of the homes did decline slightly, with 2013 averaging more than $1.47 million per sale and 2014 only averaging a little under $1.41 million with each home.

The Global Price Decline

Around the world, prices for luxury homes have hit a plateau due to a weak economic picture and the approach of the holiday season. Colorado’s own market reflects this slightly, with the average price per home sale declining as mentioned above. Interestingly, one of the potential things keeping the prices low is believed to have been the unstable political scene in the United States, which built up toward midterm elections all through October. It will be interesting for experts and potential buyers and sellers alike to see what the month of November will bring, since the political scene has now stabilized slightly with the completion of election season.

The Forces behind the Trends

The rise in sales that coincides with the lack of price growth is consistent with other trends that experts have seen throughout the 2014 calendar year. Other than the shape of the global economy, the changing market is also likely to be influenced by the upcoming holiday season, when more American families tend to have less disposable income and are less likely to make a major real estate purchase. Regardless of what the next two months bring, 2014 has seen some significant transactions when it comes to luxury homes. The fact that more homes are being sold in the Denver area demonstrates that Colorado has a lot of desirable real estate when compared with the rest of the country.

October might mark the last major gain in luxury home sales in the 2014 due to the coming holiday season, but it certainly has been a good year for buyers in this market. With more homes selling and prices remaining stable, it seems that anybody who wants a good deal in a luxury home, be it in Colorado or elsewhere, should definitely consider making a move soon.

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