The upper end of Denver's soaring real estate market continues to surge, new data show.
In May, a record-breaking 179 homes priced over $1 million sold and closed, up over 21 percent from the month prior and up nearly 38 percent year over year, according to Denver Metro Association of REALTORS (DMAR).
“By this time next month, sales in the Luxury Market of homes priced over $1 million will likely surpass one billion dollars year to date,” said Elaine Stucy, DMAR Market Trends Committee member and metro Denver real estate agent. “This is a stunning trend in a month where traditionally the greatest number of homes come into the market. However, instead of a build up in supply, there was a full 1 percent reduction in months of inventory to a 5.8 month supply.”
Average home prices in the Denver area have continued an upward climb to a new high of $449,736, up 2.84 percent from the previous month and up 9.83 percent from a year ago.
“Housing numbers seasonally surge this time of the year and 2017 is no different,” stated Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “We experienced robust gains in active listings, new listings, under contracts and sales volume for the entire residential market. Inventory continues to be a significant concern, particularly in the lower price ranges.”
Of the available listings on the market only 41 percent are priced below $500,000, according to Danyliw. “The competition for homes under $500,000 is fierce as this price segment is below one month of inventory. Considering this price range accounts for 74 percent of all sales in metro Denver, homebuyers should expect continued competition.”
By the numbers in the residential (single family and condo) market, there were 5,895 active listings in May, up 9.96 percent from the month prior and 7.91 percent year over year. New listings to the market also increased month over month by 9.82 percent and year over year by 6.39 percent. Homes under contract increased 5.2 percent from last month and 12.71 percent from last year. The number of sold listings increased by 11.48 percent compared to the month prior and 1.9 percent year over year, for a total sales volume of over $2.39 billion.
DMAR’s monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999) and “Premier Market Report” (properties sold between $500,000 and $749,999). In May 179 homes sold and closed for $1 million or greater to reach a new single-month sales record in this segment. The closed dollar volume in May for all luxury residential was $264,164,978, up 19 percent month over month and 34.43 percent year over year.
The highest priced single-family home sold in May was $5,850,000 representing five bedrooms, nine bathrooms and 7,358 above ground square feet in Denver. The highest priced condo sold was $1,837,500 representing two bedrooms, three bathrooms and 2,338 above ground square feet in Denver. Listing and selling agents for both transactions are DMAR members.
Just as the Luxury Market is “hot,” so too is the Signature Market comprised of homes priced between $750,000 and $999,999. “The single-family Signature Market was hot like the summer days we are starting to get,” comments Brigette Modglin, DMAR Market Trends Committee member and metro Denver real estate agent. “We saw over 19 percent more homes sell from the month prior and 50.7 percent more year over year. Sales volume increased over 19 percent compared to April and over 49 percent from a year ago.”
