You might be surprised where the biggest percentage increase in home sales has taken place in the Denver area so far this year. Sales of single-family homes priced from $1 million to just under $2 million jumped by 53 percent in the first two months of the year, compared with the first two months of 2014, according to a recent report by the Denver Metro Association of Realtors (DMAR). That is by far the biggest percentage increase in any price range.
The overall market, meanwhile, saw home sales dip by almost 12 percent in January and February on a year-over-year basis. Ironically, the “sweet spot” for housing, between $200,000 and $299,999, accounted for about a third of the 3,703 closings in the first two months of the year, but experienced a year-over-year drop of 21 percent.
While overall home sales are down so far this year, the dollar volume is up. In the first two months of 2015, buyers paid $1.4 billion for single-family homes, a one percent increase from the first two months of 2014. That is because year-to-date, the average price of a single-family home rose 15.2% to a record $380,732.
In the 11-county area, the sales volume for luxury single-family homes — those priced at $1 million or more — hit $76.7 million in February, an incredible 112% jump from $36.15 million in February 2014, according to DMAR. Of course, the common thread for the overall market is the record shortage of active listings on the market. There is a severe shortage of homes in the Denver market in just about every price range, while demand for housing has never been stronger, driving up prices.
If you are an empty nester, you will never have more buying power to move into a smaller home, such as a downtown condo. If you are moving up, you will have a bit more to choose from, because the $2 million-plus market is always a smaller part of the overall housing pie.