The luxury home market in the Denver-area saw almost a 50 percent drop in sales in September from the two-year high in August, according to a report released today.
Million-dollar property transactions have come “back down to earth,” according to the report by Coldwell Banker Residential Brokerage. An earlier report by independent broker Gary Bauer showed the same trend. A total of 36 homes sold for more than $1 million in the Denver area last month, a 17.8 percent drop from the 46 in September 2009 an a 49.3 percent drop from the high-water market of 71 in August. However, the median sale price climbed ore than 14 percent from August to reach $1,422,500 in September. The median price was off 2.9 percent from a year ago.
The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million last month in the Denver Metro Area. Bauer used the same data source.
Trend?
“The luxury end of the Denver Metro Area housing market, like the overall market, experienced an adjustment downward last month,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. “We’ll be looking to the next month or two to see if this was an anomaly or part of a trend.”
Mygatt said that although the local housing market has improved overall the depths of the recession, it still faces challenges. “There are still economic headwinds the market has to contend with, both in terms of the job market and consumer sentiment,” Mygatt said. “We’re moving in the right direction I think, but improvement in the housing market will probably come in fits and starts until more of the macro economic issues improve.”
However, Mygatt noted that despite the drop in sales last month, there are still buyers looking for high-end properties. “Luxury properties that are priced appropriately, are well maintained and in desirable areas are still selling in a reasonable amount of time,” he said.
Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:
The most expensive sale in the Denver Metro Area in September was a six-bedroom, seven-bath 10,473-square foot home in Cherry Hills Village that sold for $7 million. That home previously had been owned by former Broncos head coach Mike Shanahan.
Denver boasted the most million-dollar sales with 11, followed by Boulder with 5, Greenwood Village with four and Cherry Hills Village with three.
It took an average of 157 days to sell a million-dollar home in the area, down from 124 days a year ago and 98 days from August.
Jason Miller, of Milan Realty, isn’t particularly bullish about the prospects for seven-figure homes.
“It looks like a “dead cat bounce,” Miller said, regarding the recent surge in sales, borrowing an investment phrase describing the rise in a stock before it crashes.Miller said a few months more of data are need to see how it plays out.
” I think there was a small pent-up demand for $1 million-plus homes,” Miller said. “This in combination of more readily available jumbo financing and the home buyer tax credit bringing in first-time buyers that allowed move up buyers to proceed. We will need to see many more sale each month, because at a sales rate of 36 homes per month, inventory will not clear the market fast enough and prices will fall further. This will create more distressed properties.”
