RESIDENTIAL LUXURY REPORT |
Mid-Year 2018
RESIDENTIAL LUXURY REPORT introduction As the Colorado luxury real estate market continues to evolve, LIV Sotheby’s International Realty remains committed to helping consumers make sound financial decisions for purchasing or selling a luxury home. To clearly outline the performance of the luxury real estate market in Colorado, LIV Sotheby’s International Realty produces a quarterly Residential Luxury Report, which compares January through June 2018 statistics to those of 2017 for single family homes and condos priced $1 million and above. The report analyzes luxury sales by county, including Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson Counties of Denver Metro, and the resort communities of Eagle County (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, etc.) and Summit County (Breckenridge, Frisco, Copper Mountain, Dillon, Silverthorne, etc.). In addition to the analysis of local, county-wide luxury market data, the report also includes statistics on emerging luxury consumers’ lifestyle preferences and purchasing confidence from around the world. *Enjoy a full analysis of the performance of the resort luxury market, located at the end of the report.
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Continuing to prove as a strong economic market, the Denver Metro (Adams, Arapahoe, Broomfield, Denver, Douglas, Jefferson), including Boulder, is poised for a promising fall season for luxury real estate. Single family homes and condos priced $1 million and above in this luxury sector are projected to demonstrate continued growth throughout Quarter 3 of 2018. Buyers and sellers alike sustain confidence in Colorado’s economy, creating a rise in the market’s performance. The January through June 2018 Denver Metro and Boulder luxury real estate market delivered excellent results, with a considerable increase of 24.9% of the number of properties sold. In addition, the total dollar volume increased an outstanding 28.5% year-over-year. Unemployment rate remains low, 3.2% for Denver and 2.4% for Boulder, providing more individuals with the opportunity to invest in real estate as consumer confidence continues to trend upward. Buyers must be prepared to act quickly, with the average days on market currently at an all-time low at just under three months (88 days), dropping 28.7% from 2017. Interesting to note in the luxury sector, mid-year numbers for 2018 indicate significant growth of price appreciation for properties under $1 million (30% increase for homes priced between $750K-$999K), while properties over $1 million remain steady at an average price appreciation of only 2.6%. These flat prices provide luxury buyers with a motivating and unique opportunity.
DENVER METRO (INCLUDING BOULDER) January through June Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume
2012
2013
2014
2015
2016
2017
2018
% Change
350
467
502
646
774
982
1,227
24.9%
$266
$317
$343
$366
$375
$384
$378
-1.5%
316
167
117
111
98
123
88
-28.7%
$5,250,000
$8,691,000
$5,950,000
$4,650,000
$6,705,000
$6,700,000
$8,000,000
19.4%
$520,806,242
$703,219,812
$785,025,622
$967,880,809
$1,182,107,321
$1,488,564,896
$1,912,952,254
28.5%
INCLUD ED COUNTIES:
A DA MS
A RA PA H OE
BOU L D E R
B ROOMF IE L D
DENVER
D OUG L AS
J E F F E RSO N
RESIDENTIAL LUXURY REPORT livsothebysrealty.com
MID -YEAR 2018 • COLORADOMARKETREPORTS.COM
DENVER
January through June
2012
2013
2014
2015
2016
2017
2018
% Change
102
144
142
201
249
337
395
17.2%
$367
$403
$432
$444
$451
$467
$481
3.2%
182
122
70
85
75
85
67
-21.2%
$5,250,000
$4,100,000
$4,925,000
$4,550,000
$5,439,000
$5,850,000
$8,000,000
36.8%
$150,638,022
$211,095,072
$214,887,454
$295,360,948
$369,507,709
$495,860,762
$601,981,445
21.4%
2012
2013
2014
2015
2016
2017
2018
% Change
76
98
109
114
124
143
188
31.5%
$339
$341
$385
$381
$408
$412
$409
-0.6%
188
244
125
125
103
103
82
-20.4%
Highest Price
$4,500,000
$7,000,000
$5,950,000
$4,650,000
$6,530,000
$6,000,000
$7,500,000
25.0%
Total Dollar Volume
$126,167,747
$161,378,148
$209,477,016
$191,195,514
$222,674,759
$253,882,779
$333,991,469
31.6%
2012
2013
2014
2015
2016
2017
2018
% Change
50
72
78
89
108
151
191
26.5%
$298
$324
$336
$341
$364
$379
$380
0.3%
325
225
147
167
138
149
129
-13.4%
Highest Price
$3,000,000
$2,550,000
$4,000,000
$2,750,000
$6,705,000
$3,600,000
$4,300,000
19.4%
Total Dollar Volume
$69,326,568
$95,258,704
$110,900,422
$124,816,315
$160,954,591
$211,963,193
$275,283,360
29.9%
2012
2013
2014
2015
2016
2017
2018
% Change
21
30
41
55
61
91
119
30.8%
$315
$333
$323
$354
$332
$390
$349
-10.4%
280
283
187
141
188
165
117
-29.1%
Highest Price
$2,600,000
$8,691,000
$2,755,000
$3,350,000
$2,914,000
$5,400,000
$5,100,000
-5.6%
Total Dollar Volume
$30,043,105
$51,320,622
$56,291,250
$74,952,720
$80,444,626
$129,748,352
$154,746,932
19.3%
Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price
ARAPAHOE
Total Dollar Volume
January through June Number of Properties Sold Average Price per Square Foot Average Days on Market
JEFFERSON
DOUGLAS
January through June Number of Properties Sold Average Price per Square Foot Average Days on Market
January through June Number of Properties Sold Average Price per Square Foot Average Days on Market
coloradomarketreports.com
BROOMFIELD
BOULDER
January through June
2012
2013
2014
2015
2016
2017
2018
% Change
Number of Properties Sold
100
118
122
178
221
241
302
25.3%
Average Days on Market
135
128
78
78
104
85
77
-9.4%
$4,400,000
$4,000,000
$4,495,000
$4,495,000
$3,950,000
$6,700,000
$5,500,000
-17.9%
$177,697,066
$180,830,421
$268,651,312
$268,651,312
$332,940,786
$373,626,210
$503,957,848
34.9%
2012
2013
2014
2015
2016
2017
2018
% Change
1
4
5
2
7
9
18
100.0%
Average Price per Square Foot
$276
$262
$309
$391
$393
$317
$343
8.3%
Average Days on Market
1,084
5
60
75
51
112
58
-48.2%
Highest Price
$1,200,000
$1,610,000
$1,310,099
$2,900,000
$2,100,000
$1,975,000
$3,375,000
70.9%
Total Dollar Volume
$1,200,000
$5,450,200
$5,721,059
$4,050,000
$10,300,000
$12,123,100
$25,263,500
108.4%
2012
2013
2014
2015
2016
2017
2018
% Change
0
1
5
7
7
10
14
40.0%
$0
$237
$274
$287
$301
$337
$303
-10.1%
0
155
105
107
74
165
86
-47.9%
Highest Price
$0
$1,020,000
$1,750,000
$1,429,000
$1,376,000
$1,250,000
$1,800,000
44.0%
Total Dollar Volume
$0
$1,020,000
$6,918,000
$8,854,000
$9,634,850
$11,360,500
$17,727,700
56.0%
Highest Price Total Dollar Volume
January through June Number of Properties Sold
ADAMS
January through June Number of Properties Sold Average Price per Square Foot Average Days on Market
KEY PURCHASING MOTIVATORS FOR EMERGING LUXURY CONSUMERS
I am at the right stage in my life for this type of purchase.
I want a home to fit a particular lifestyle.
I am doing well in my job currently.
I want to make a purchase like this for the benefit of my family.
U.S. U.K. INDIA
U.S. CHINA U.K. INDIA
U.S. U.A.E.
CHINA
RESIDENTIAL LUXURY REPORT livsothebysrealty.com
MID -YEAR 2018 • COLORADOMARKETREPORTS.COM
Domestic and international buyers continue to narrow in on Colorado’s world-class resort communities, located an ideal two hours away from Denver Metro. Eagle County (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, etc.) and Summit County (Breckenridge, Frisco, Copper Mountain, Dillon, Silverthorne, etc.) provide luxury buyers with a sought-after lifestyle of enjoying the adventurous Colorado mountains, with close proximity to the bustling metropolis of Denver. Combined, the Resort Luxury Markets remain fairly steady for number of properties sold, however average days on market significantly decreased. In Eagle County, the luxury market experienced a high volume of activity January through June 2018, as the number of properties sold increased 8.9% and the average price per square foot also increased 3.4%. Average days on market decreased by a notable 21.8% to 208 days January through June 2018, an impressive time frame for the luxury resort market where homes typically stay on the market longer. For Summit County, average days on the market also decreased by 27.2%, from 184 days January through June of 2017, to an impressive 134 days in 2018. This significant decrease in the number of days on the market indicates consumers’ continued confidence in the resort luxury market and a willingness to act fast. Number of properties sold and total dollar volume did show a dip for January through June 2018, compared year-over-year. The luxury resort markets of Eagle County and Summit County remain robust and competitive, with continued growth projecting into Quarter 3 of 2018.
EAGLE
January through June
2012
2013
2014
2015
2016
2017
2018
% Change
124
119
161
163
156
190
207
8.9%
$872
$703
$833
$856
$850
$841
$870
3.4%
285
270
296
288
274
266
208
-21.8%
Highest Price
$14,100,000
$13,550,000
$19,000,000
$15,750,000
$14,000,000
$23,000,000
$18,500,000
-19.6%
Total Dollar Volume
$382,528,751
$268,389,100
$459,530,231
$454,338,449
$354,880,454
$539,492,173
$597,451,300
10.7%
2012
2013
2014
2015
2016
2017
2018
% Change
40
52
58
81
81
149
138
-7.4%
$342
$452
$440
$496
$431
$480
$462
-3.8%
269
280
244
202
230
184
134
-27.2%
$3,742,500
$3,400,000
$3,640,593
$3,700,000
$5,675,000
$4,200,000
$3,600,000
-14.3%
$61,654,928
$79,314,236
$89,713,292
$130,900,012
$134,930,773
$248,395,497
$210,477,699
-15.3%
Number of Properties Sold Average Price per Square Foot Average Days on Market
SUMMIT
January through June Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume
coloradomarketreports.com
PURCHASING CONFIDENCE AMONG EMERGING LUXURY CONSUMERS Many emerging affluent consumers, defined as those with $250K USD – $1M USD in investable assets, have increasing confidence in the housing market and plan to purchase a home within the next three years.
EMERGING LUXURY CONSUMERS’ LIFESTYLE PREFERENCES Emerging luxury consumers have their eyes set on these property lifestyles for their luxury home purchase:
RESIDENTIAL LUXURY REPORT livsothebysrealty.com
YEAR - END 2017 • COLORADOMARKETREPORTS.COM
The life you love.
livsothebysrealty.com | coloradomarketreports.com All data contained within this report is based on $1,000,000+ sales in Metropolitan Denver, Boulder, Eagle County and Summit County. Based on information from REColorado, IRES, LLC, Vail Board of Realtors速 and SAR MLS. This representation is based in whole or in part on data supplied by REColorado, IRES, LLC, Vail Board of Realtors速 and SAR MLS. REColorado, IRES, LLC, Vail Board of Realtors速 and SAR MLS does not guarantee nor is in any way responsible for its accuracy. Data maintained by REColorado, IRES, LLC, Vail Board of Realtors速 and SAR MLS may not reflect all real estate activity in the market.