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Are Luxury Home Sales in Denver Slowing Down? Not by a Long Shot!

New Home for SaleMonth after month, sales of luxury homes in the Denver area have been increasing. February was no exception and in fact saw the largest percentage increase in quite a while. Luxury home sales in the Denver area showed a 46% growth in year-to-year comparisons with 2014. Even as experts wonder how long the surge will last, sales seem to be increasing with no end in sight. Overall the Denver area has definitely been friendly to luxury buyers as of late.

The Trends So Far

The Denver luxury real estate field has stymied experts with its growth for several months now. Throughout the latter half of 2014, the market consistently sold more homes than it had in the same time period the year prior. This was expected to taper off heading into the end of 2014, since the holidays usually mark a decline on the real estate market. But despite these expectations, the market continued to see growth and hasn’t stopped. In general, the number of transactions is continuing to rise but the overall value of the homes sold is staying about the same. That’s good news for buyers, who have more options and more flexibility in finding good deals on luxury real estate.

Are Prices on the Rise?

As stated above, prices have generally remained stable during this unexpected surge. However, the February numbers show something slightly different. The average luxury home in February sold for a median price of $1.39 million, which is higher than home sales in previous months have clocked in at. This is also an increase over February 2014, where the average home cost $1.26 million. This might be a one-time increase in a market where such changes are common. The other possibility is that lower-priced homes are mostly off the market, leaving the higher-end properties. If the latter is true, then it means sellers might be better off being aggressive when it comes to finding deals on homes they want.

Looking Toward the Future

The boost in home sales is encouraging for those who hope this surge will continue into the next few months. Home sales typically increase during the springtime as people start relocating and realtors benefit from a more pleasant environment to display houses in. Another interesting situation is that we are nearing the point where the 2014 upswing upswing began. That means that the rising home sales are going to be contending with numbers from a year ago which are already inflated from a powerful market. Experts know that the bubble has to burst eventually, but there are new homes coming onto the market frequently, which suggests that the end may not be here for several more months.

In the end, the market increase means that potential luxury homebuyers have a lot of options but that there are many other buyers out there to compete with. If you plan on buying luxury real estate in the Denver area, make sure you place a competitive bid but remember that you may have other options if one property doesn’t quite work out.

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