In June, 24 condos priced $1 million and greater sold and closed, up 118 percent year over year. On average, the price of these condos was over $1.6 million, $550 per square foot, and sellers received 136 percent of their listing price, according to the Denver Metro Association of Realtors.
“The metro Denver Luxury Market was a sparkler in June as it continued on a firework-like trajectory,” said Jill Schafer, DMAR Market Trends Committee member and metro Denver REALTOR®. “We saw the biggest boom in the luxury condo market where there was a 50 percent increase in sales for properties priced over $1 million from May to June. That’s a nearly 70 percent increase year to date compared to the same time in 2016.”
The average price per square foot of luxury single-family and condo homes combined reached a new high of $304 in June. Furthermore, the average sold price of homes in the residential market across the Denver area in all price segments reached a new high of $454,547, with the average price of single-family homes being $498,762. While the market continued to break records, according to Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver REALTOR®, activity in the metro market at large “gives hope to homebuyers that our extreme seller’s market may be showing some early signs of easing.”
“As we close in on our seasonal housing peak we’ve seen strong gains in inventory, number of new listings and average and median sold prices, yet under contracts and homes sold experienced small declines,” said Danyliw. “While low inventory continues to be a major driver in our market, we did have a large boom in inventory in June, increasing 19.75 percent month over month, compared to our 10-year average of 6.24 percent. Median year-to-date sold prices remain strong at 7.79 percent over last year even though this represents the first time this year it dropped below eight percent.”
By the numbers for the metro housing market in all price ranges, active listings in the residential market (single family and condos) were at 7,059 total units in June. The number of sold listings totaled 5,712, which is a decrease of 1.82 percent compared to the previous month, yet 5.81 percent ahead of last year. Additionally, year over year, condo inventory was up 22.49 percent and single-family inventory was down 0.72 percent. The total sales volume in June was $2.596 billion, up 8.66 percent year over year and 14.53 percent year to date compared to 2016.
Our 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 June, 206 homes sold and closed for $1 million or greater to reach a new single-month sales record in this segment for the second consecutive month. The closed dollar volume in June for all luxury residential was $310,462,188, up nearly 12 percent month over month and 24 percent year over year.
The highest priced single-family home sold in June was $5,000,000 representing four bedrooms, six bathrooms and 7,116 above ground square feet in Denver. The listing and selling agents for this transaction are DMAR members. The highest priced condo sold was $3,900,000 representing three bedrooms, three bathrooms and 4,495 above ground square feet in Denver.
“Things are almost perfectly balanced in the single-family Luxury Market with 5.6 months of inventory,” comments Schafer. “For years, homebuyers have had an abundance of luxury choices. Now, they’re often competing to purchase homes in the most popular luxury neighborhoods. The sale of detached single-family homes priced over $1 million increased 6.4 percent from May to June, which is a nearly 30 percent increase year to date.”
Notably, on the opposite end of the spectrum from the luxury segment, homes priced under $400,000 remains competitive too as months of inventory sits below one. This housing segment represents only 26 percent of the total inventory today, compared to 65 percent in 2011.