In Denver’s vibrant housing market, it’s not just bungalows that are flying off the market. Luxury homes are also selling at record levels.
According to the Denver Business Journal, Denver’s luxury housing market surpassed $2 billion in sales by August of this year, the earliest it has ever hit that mark.
Luxury homes are generally defined as those priced over $1 million. In recent months, such homes have been spending an average of 66 days on the market—far less than the historic average of 80-90 days.
Homes are selling at higher prices than in the past, which explains some of the change. Additionally, higher paying jobs have migrated to Colorado, through companies such as Charles Schwab, Strava, Charter and Xero, fueling buyers’ ability to pay high prices. More inventory in that price range has also impacted the total sales figure.
This record-breaking streak is seeing a slowdown, however. “[Despite] more inventory and high sales volume, many luxury homes across the metro are also experiencing price reductions and are spending more days on the market,” noted one DMAR market trends committee member.
As inventory continues to increase, he adds, price reductions are likely until February, when the sales season “kicks back into high gear.”
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