The February 2023 Luxury Real Estate Market Report is a guide to the luxury real estate market in North America and Denver. Within this report are current monthly statistics for Denver luxury single-family and attached homes month over month as well as the 13-month trend.
The luxury benchmark price for Denver single-family homes is $1,050,000, set by The Institute for Luxury Home Marketing. LUXURY BENCHMARK PRICE is the price point that marks the transition from traditional homes to luxury homes.
- The Denver single-family luxury market is a Seller's Market with a 30% Sales Ratio. Overall inventory remains extremely low across a majority of price points
- Homes sold for a median of 96.2% of list price in January 2023.
- The most active price band is $1,300,000-$1,399,999, where the sales ratio is 61%.
- The median luxury sales price for single-family homes is $1,369,000.
- The median days on market for January 2023 was 46 days, up from 9 in January 2022. Homes may not sell in the first weekend, or even the first 30 days, but they are selling.
In this month’s report we review why understanding real estate cycles are important for buyers and sellers especially as we transition from a market set for a correction, and what this truly means.
We discover why the predictability of real estate cycles can help understand cyclical trends, while appreciating that there will always be variables that will impact the speed of change and strength of each cycle.
We research why 2023 is expected to return to a more normalized market with short-term cycles seeing typical ebbs and flows with respect to buying and selling trends.
How, even though we have moved in the long-term cycle from a Peak Phase to a Recession Phase, the expectations for 2023 are not likely to see a ‘crash’ but instead a ‘correction’ in the level of sales activity and pricing.
We discover the exceptions in this Recession Phase that are preventing a downturn in the market and the factors that could influence opportunities in the current market.
We reveal the contradictions in today’s market that manifesting in local markets experiencing very different results with respect to demand and price.
Equally, we understand how differing demographic demand for location, property type and pricing are expected to impact both choice and decisions in 2023.
Finally, we explore what can we expect, all present conditions remaining constant, in 2023 with respect to pricing, inventory, sales and why ‘value for money’ will become an important part of the decision-making process again.
The luxury benchmark price for Denver attached homes is $650,000, set by The Institute for Luxury Home Marketing.
- The Denver attached luxury market is a Balanced Market with an 17% Sales Ratio.
- Homes sold for a median of 97.04% of list price in January 2023.
- The most active price band is $1,000,000-$1,199,999, where the sales ratio is 75%.
- The median luxury sales price for attached homes is $82,000.
- The median days on market for January 2023 was 58 days, up from 45 in January 2022. While homes are not flying off the market within a weekend, buyers are still in the market. They have wrapped their heads around higher interest rates, have factored in rate buydowns into their purchase costs and are simply taking their time to find the right home.
It is important to understand that the art of selling and buying should always include an analytical approach to truly appreciate the realities, rather than just listening to the market rhetoric.
For homeowners looking to sell or buy their Denver luxury home in today’s market we recommend working with a realtor who can provide you with critical knowledge about the Denver market, maintain a high level of security during the transaction and knows how to leverage technology to provide maximum exposure and assistance.
It is my responsibility as your REALTOR to ensure that when others around you are lowering their expectations, that this becomes the time for us to switch gears and discover how to leverage the Denver luxury market effectively to achieve your goals. Contact us at barry@porchlightgroup.com or call 303.887.0588.
⁴ Data reported includes Active and Sold properties and does not include Pending properties.
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