You pull up to a six-car garage where the correct door automatically glides open when it recognizes your car. As you enter your home, you admire the pattern and sheen of your marble floors and the elegant curves of your main staircase. You head down to your wine cellar and pour a glass of your favorite Malbec. Then you return upstairs and stand in front of the floor-to-ceiling windows overlooking your swimming pool backed by an acre of trees. You swirl your glass, inhale the aroma of your wine, and take a moment to savor the success you’ve achieved and to feel grateful for living amidst so much beauty while having plenty of space and tranquility.
Denver’s luxury properties, or homes that sold for $1 million or more, have been all the rage lately. More single-family luxury homes and condos have been sold so far this year than at the same time in any of the last four years.
So far this year, 730 luxury single-family homes have sold, nearly a 30% increase from this time last year, when that number was 564. In June, out of 1,019 active single-family luxury properties, 182 were sold. The average sales price was close to $1.5 million. The average closing price was 97% of the listing price, and homes spent an average of 77 days on the Denver luxury real estate market, a 26% decline since this time last year. Ten more luxury single-family homes sold in June ’17 compared to May ’17, an increase of 6.5%.
Denver Luxury Condos
Luxury condos are hot, too, though the market is much smaller. It had just 87 active properties in June, of which 24 sold. Eight more condos sold in June than in May, an increase of 50%. The luxury condo market has seen 90 sales so far this year compared with 53 at this time last year, an increase of nearly 70%.
The average sales price of a luxury condo in June was more than $1.6 million, nearly 28% more than in May (but the small sample size is tiny, so take the percentage with a grain of salt). Luxury condos typically spent 175 days on the market in June, a huge increase of 187% since last year. Despite the long time on the market, the closing price averaged 136% of the list price.
The luxury condo market is a seller’s market because of its low inventory of just 3.6 months, whereas in the detached single-family luxury market, neither side would seem to have the advantage with almost six months of inventory. Yet buyers are competing to get an address in the most popular luxury neighborhoods, real estate agent Jill Schafer told the Denver Metro Association of Realtors in its July 2017 market report. That’s good news for sellers.
Luxury Homes Denver: Prices and Features
June’s most expensive single-family home sold for $5 million. It has four bedrooms, six bathrooms, and over 7,000 above-ground square feet. The most expensive condo sold for $3.9 million and has three beds, three baths and nearly 4,500 above-ground square feet. The average price per square foot for luxury single-family homes and condos combined? $304.
The most expensive single-family property for sale in Denver in July was a 22,000 square foot ranch off Highway 141 surrounded by nearly 7,000 acres listed at $149 million. The stone-and-stucco main lodge has 14 bedrooms and 14 baths, geothermal heating and cooling, and views of the sun setting behind the mountains. The property also features grazing land, a grass airstrip, and a helicopter pad.
An over-the-top house at 8 Cherry Hills Park Drive, listed at $22 million, comes in second. It includes a full-sized gym, indoor putting green, two-lane bowling alley, marble and hardwood floors, and a dine-in wine cellar.
A 10-acre private estate at 4545 South Holly Street, also in the prestigious Cherry Hills Village, wins third prize with a listing price of $11.5 million. Beyond its beamed and vaulted living room with a grand, wood-burning fireplace and built-in wooden bookcases, you’ll find a pool, a pond, a fenced-in area for horses, and a four-stable barn.
Denver’s Luxury Rental Market
What about folks who prefer to rent? Metro Denver is flush with brand-new luxury apartments offering amenities such as yoga studios, movie theaters, game rooms, bicycle repair stations, and dog spas, the Denver Post reports. Sixty percent of apartments built in Denver since 2014 have been priced in the top third of the rental market, a 2016 Zillow study found. A new, two-bedroom downtown luxury apartment can go for $3,000 to $4,000 a month.
Some of these apartments are offering concessions such as one to two months’ free rent to fill all the vacancies, since new luxury apartments are coming on the market faster than they can be filled. Why the excess supply? Land and construction are so expensive that developers have skewed toward building luxury units — they aren’t that much more expensive to build, but they command much higher rents than standard apartments.Are you ready to make your luxury living dream a reality? Contact a Usaj Realtor today to learn more about how we can help you find or sell your luxury home