Kentwood Real Estate releases luxury home report.
Best ever November for luxury home sales.
Condos, in short supply, trailed luxury sales.
November luxury home sales sizzled. Source: Kentwood Real Estate.
Luxury home sales in the Denver soared last month, making it by far the best November on record for homes priced at $1 million or more.
In November, 91 single-family homes sold, a whopping 111.6 percent jump from the 43 a year earlier, according to a report by Kentwood Real Estate.
Year-over-year, closed dollar volume rose even more.
The closed dollar volume for luxury homes hit $149.39 million, 121 percent more than the $67.6 million in November 2015, according to Kentwood’s analysis of REcolorado data for the core Denver area, which does not include Boulder.
Luxury home prices have set monthly records all year.
They also have been far outperforming the overall market on a percentage basis.
The Denver Metro Association of Denver and REcolorado, for example, each showed just under a 13 percent increase in all single-family homes in November compared to November 2015.
“I just think Denver is becoming more of a luxury home destination,” said Dee Chirafisi, a broker and founder of Kentwood City Properties.
Given the double-digit appreciation of homes in the metro area during the past several years, homes which told for $800,000 in the past, are now selling for more $1 million, she said.
Buyers are a mix of those taking advantage of the housing appreciation by trading up and those moving from out-of-state.
“If someone has just sold a house in New York or San Francisco for $2 million, they can come to Denver and buy the same house for 30 percent less,” Chirafisi said.
Like the economy itself, out-of-state buyers are diversified, she said.
She has seen out-of-state buyers in tech, finance and in the energy fields shopping for luxury homes in the metro area. Neighborhoods such as Cherry Creek North, Hilltop and Washington Park remain strong, she said.
Chirafisi, along with fellow KCP brokers Kevin Garrett and Matt McNeill, are also seeing brisk sales at the planned 12-story Lakehouse condo tower in the Sloans development on the former St. Anthony’s Hospital campus.
“What we have found is that all the reservations we are taking are from empty nesters and the ones that are going the fastest are in the $800,000 to $1.6 million price range,” Chirafisi said.
The most expensive units in the planned 12-story Lakehouse across from Sloans Lake are being reserved at a brisk pace.
That surprised her, as she expected the lower-priced units to be snapped up first.
The buyers are coming from Boulder, Genesee, Cherry Hills and a few from downtown Denver and Washington Park, she said.
They all like that the units won’t be ready to move into for another three years, she said.
“They like the fact they have three years because they are downsizing and for a lot of them it is going to take them that long to get rid of their stuff,” Chirafisi said.
However, millennials that can afford to buy at the Lakehouse, find the wait too long.
“We’ve found that millennials don’t plan three years in advance,” Chirafisi said. “They tell us they love the units and the location and if there are still units available in three years, then they will consider moving here. They are so mobile that they don’t know if they will still be in Denver three years from now.”
Year-to-date, 1,016 luxury homes have traded hands, 22.4 percent more than 830 in the first 11 months of 2015.
Closed dollar volume for luxury homes, year-to-date, stood at $1.55 billion at the end of November, 24.5 percent more than the $1.25 million tally in the first 11 months of last year.
The most expensive home to sell last month was a 7,751-square-foot, 5-bedroom, 6-bathroom home in Cherry Creek North.
That home sold for 130.3 percent more than the most expensive home that sold in November last year for $3.04 million.
Luxury condos, which are in short supply, in contrast to luxury single-family homes, showed deep declines last month.
Only four luxury condos traded hands in November, a 69.2 percent drop from the 13 in November 2015, according to Kentwood.
Year-to-date, there have been 53 luxury condo sales, down 8.6 percent from 58 in the first 11 months of 2015.
However, luxury condos, when they do hit the market, have sold much faster this year than in 2015.
The average days on the market, year-to-date, for seven-figure condos is 60 days, a 52.4 percent drop from 126 days last year.
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