The luxury real estate market, homes over $1 million, has had a rough deal from the deck for the past three years both nationally and here in Denver. While inventory remains high and prices continue to drop, some luxury homes still manage to sell (see our sale of the Phipps’ home in Belcaro).
Here is a review of the market for the past twelve months for the combined area of Denver, Cherry Hills Village, and Greenwood Village (see these markets individually).
Sold: 215 grateful sellers have come up aces and successfully sold their homes. Over 60% of those sold were less than $1.5 million (see chart). The average reduction from the original list price to the final contract price was 21.5%. The number of luxury homes sold has edged up slightly to 217 from 205 the previous year.
About to sell: Currently 20 anxious luxury sellers are under contract awaiting their closing day, a happy day that may rival their wedding day or the birth of a child. Another 5 homes have contracts that require bank approval before they are fully executed as part of a short sale or foreclosure.
Not selling: Another 260 sellers are keeping the faith as they continue to market their homes. The average days on market for these faithful is 290 days — the market average under a million dollars is 149 days, or almost half. The most expensive home listed in MLS, 5000 E Quincy Avenue in Cherry Hills Village, is listed for a mere $18,900,000.
The market has 14.5 months of inventory available; meaning that if no other luxury homes come on the market and luxury homes continue to sell at their current rate, it would take 14.5 months to sell all of them.
Given up: 268 sellers have folded and withdrawn their listings from the market. If you consider the first two categories above (sold and about to sell) as “successful ventures”, and the second two (not selling and given up) as “failed ventures”, then your probability of selling a luxury home is 1 out of every 3.19 listed.
If you or someone you know is thinking about selling a luxury home, knowing the reality of the market is essential to beating the odds. Feel free to forward this article on to friends and family and don’t hesitate to send us an email. We appreciate your continued support and referrals.