With so much happening in the real estate market in Colorado, it can be hard to keep up! That’s why today we’re focusing on a specific area - luxury properties. A luxury property is considered anything with a price point over $1 million. While that seems like a lot - and it is - it’s becoming more and more common for homes in Colorado to hit that number (and even higher!). Whether it’s a larger home in the Denver metro area or a second property in a mountain town, we’re going to take a look at what’s going on with high-end real estate in Colorado.
Million-dollar transactions have doubled
According to a recent report from the Denver Metro Association of Realtors, there have been 1,353 closed sales of properties over $1 million, compared to 661 last year-to-date in 2020. Prices are on the rise, and they are showing no signs of slowing down. Typically spring and summer are busy seasons for sellers to put their homes on the market, and we expect today’s market conditions to continue - very tight inventory, rising prices, and lots of competition.
Out-of-state buyers have fueled a busy market
Have you heard the term Zoom Town? A Zoom Town is a city that’s experienced a huge increase in out-of-state movers because of the pandemic. People in New York or San Francisco have found they can get much more for their money elsewhere, and it’s added pressure on an already tight market. 5280 Magazine recently reported that out-of-state buyers have housing budgets that are 26% higher than locals.
Colorado mountain towns are seeing unprecedented growth
Resort towns in Colorado like Vail, Aspen, Breckenridge, and others have seen a major spike in demand and prices. According to 5280 Magazine, the median sales price in San Miguel County (where Telluride is located) has increased 66.5% to $932,500 for a single-family home. Many local and out-of-staters have found that if they can work from anywhere, they’d rather work from a mountain town! All of this increased growth in resort communities is leading to a shortage in rental housing for locals and people who work in these towns.
Denver metro luxury transactions continue to rise
The city of Denver saw a 95.3% rise in the number of luxury homes in Q1 2021 compared to Q1 2020. This astounding increase in price is why Denver is such a competitive market. Although buyers are being priced out of homes, there’s always someone next in line who is willing to pay above asking price or full cash.
The Bottom Line
Denver’s market is hot, and that’s not going to change for a while. If you are looking to buy a home, here are some tips on getting an offer accepted. With prices on the rise and inventory at historic lows, buying a home in Denver is challenging, but not impossible! That’s why I’m here.
Looking to buy or sell in the Denver metro area? Get in touch with me at 8Z Real Estate! I have the expertise and knowledge to help you navigate an intense real estate market.