Reporter- Denver Business Journal
Denver’s luxury home market for June was a lot like the record-setting temperatures: hot.
There were 63 homes and condos with a price tag of more than $1 million that sold in metro Denver in June, a significant 37 percent increase over June 2011, according to Kentwood Real Estate’s most recent report based on Multiple Listing Service data.
“It’s been amazing,” said Edie Marks, broker associate for Kentwood. “Not only are we selling properties, we’re getting multiple offers on multimillion-dollar properties. I can’t even remember the last time we had that.”
Marks has been selling Denver real estate since 1977 and specializes in luxury homes. She said despite the increase in average sales prices recently (http://www.bizjournals.com/denver/news/2012/07/05/metrolist-denver-housing-market.html), prices still have been depressed for luxury homes, so bargains are easy to find.
Kentwood’s June report also showed a sales volume of $92.55 million, up 28 percent year over year. While the average sales price dropped to $1.47 million from June 2011’s $1.57 million, the average days on the market rose slightly from 200 in June 2011 to 209 last month. But year to date, the average days on the market has dropped from 247 days through June in 2011 to 226 through June 2012.
Marks said the lack of inventory at lower price levels, plus the historically low mortgage interest rates, have pushed some buyers into the luxury market.
“Anyone financing is getting more bang for their buck because of the rates,” she said. “I don’t see it slowing down anytime soon. People are making decisions now.”
The highest price home sold in June was for $3.49 million, the report states.
Year to date, buyers have snapped up $340.22 million worth of luxury homes in 226 transactions, compared to $292.34 million and 198 transactions through June of 2011.
Dennis Huspeni covers real estate and retail for the Denver Business Journal and writes for the “Real Deals” blog.
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