A Snapshot Of The Luxury Real Estate Market
Denver, Douglas, and Boulder County are among the fastest growing luxury communities, but that doesn't include the various resort markets that are also on the up-and-up here in Colorado. In a year-over-year comparison of the various communities for luxury real estate in Colorado, analyzing Quarter 1 trends and activity, we’ve seen:
- 13.4% increase in price per square foot
- 31.8% decrease in days on market
- 1.1% increase in the number of properties sold
- 2.6% increase in total sale dollar volume
Douglas County accounts for the most dramatic year-over-year changes, with a 33.3% increase in total properties sold and a 35.6% increase in total sale dollar volume. Luxury real estate in Colorado’s suburban communities is most certainly a buyer’s market, while central Denver remains a seller’s market featuring premium listing prices that sell in record time.
The last time we saw this much rapid growth was across 2015 and 2016. While 2017 brought a slower pace to the market, the second wind is taking no prisoners as the market soars into 2019.
What Do Buyers Want Out Of Luxury Real Estate In Colorado?
Many things draw homebuyers to Colorado, including the expansive mountain views and 300+ days of sunshine. However, simply being in Colorado is not enough for these homebuyers. Equal percentages of the luxury consumer buyer’s pool are looking for waterfront or urban properties to plant their roots. Also among the most popular features are historic properties, proximity to golf courses and skiing, with vineyards bringing up the rear.
Compounding on these features, there are also certain components in a buyer’s life experience that compel them to invest in luxury real estate. For American buyers, the most common motivations for purchasing luxury real estate include their current life stage, their current lifestyle, and achieving a certain level of professional success.
With all that in mind, the next three years are going to be very important for this pool of buyers. More than three-quarters of emerging affluent customers, defined as those with $250,000 or more in investable assets, are planning to purchase a luxury home within the next 36 months.
Why Invest In Luxury Real Estate In Colorado?
If you’re considering luxury real estate in Colorado, now is the time to do it. We’re anticipating a continued upward trend in price per square foot and a slow decrease in available properties. When it comes to investing in the Colorado market, it’s hard to go wrong. Let’s discuss some of the reasons this booming market should be next on your list.
1. Real Estate Isn’t The Only Market Growing
Denver boasts an unemployment rate well under the national average and has for many years. The job market has exploded in the Centennial state, bringing out thousands of new residents on an annual basis.
2. Upcoming Redevelopments Are Already Planned
You can trust that your investments in luxury real estate in Colorado won’t end up losing money due to a neighborhood downfall. The area, especially in Denver Metro, has already made plans for redevelopment, keeping the neighborhoods not only beautiful, but also thriving economically.
3. Investment Properties Have Strong ROI
If you are considering luxury real estate in Colorado as a source of income, you are not alone. The state is relatively landlord friendly with more and more residents coming in from more expensive markets driving expected rent prices up. The ROI on Colorado real estate alone is enough to motivate buyers who are on the fence.
4. It’s A Growing Market, Overall
From the many tourist attractions to the thriving business community, every aspect of the Colorado economy is flourishing. You can’t go wrong in the Centennial State.
An Expert On Luxury Real Estate In Colorado
If you are considering luxury real estate in Colorado, whether for your family or as an investment property, our residential market expert is happy to help you navigate your options. Contact Chris Davis today to learn more about how you can find your dream home in Colorado.