Sales of luxury homes in the Denver area were brisk in the first quarter of 2011, which bodes well for the overall
Although the million dollar-plus market is a small part of the overall Denver-area housing market, it is bucking the trend of the overall market, which is down from the first quarter of last year.
Last year, there were 8,391 closings in the first quarter, 9.5 percent more than the 7,594 in the same period this year. By contrast, 99 homes sold in the first three months of this year that were priced at least $1 million, 11.2 percent more than the 89 luxury homes in the first quarter of 2010.
Homes costing at least $1 million accounted for 1.3 percent of the entire market in the first quarter of this year, compared with a 1.06% percent share during the same period last year. The numbers are small, but that equates to a 22.6 percent increase in the relative market share.
Why is fewer than 100 homes selling important?
Traditionally, following a housing downturn, high-end home sales lead the recovery. The reasoning is that the so-called “smart money” recognizes the value. Sophisticated, seasoned buyers – many who have weathered the ups and downs of real estate cycles – are often the first to recognize buying opportunities. High-end buyers in many cases are able to snap up homes at huge discounts, and they know they can’t last.
At the same time, jumbo loans – those above the conforming limits of $417,000 – are more available today than a year ago. Rates for 30-year, fixed jumbo loans are still hovering around 5.25 percent, with various ARMs lower than 4 percent in some case.
The same forces are at work in the less expensive move-up market.
So if you want to take a page out of the “smart money” playbook, now is the time to take advantage of the competitive pricing and low mortgage rates.
Denver’s commercial real estate looking up. Read more: http://www.metrodenver.org/metro-denver-economy/monthly-summary
Time to buy. Read more: http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/
Financial Times: Following the smart money. Read more: http://www.ft.com/cms/s/2/a576b408-4519-11e0-80e7-00144feab49a.html#axzz1JFWCJyCp
H&M coming to Denver? Read more: http://insiderealestatenews.com/2011/04/niketown-ran-its-course/
ULI tour examines big buildings on campus. Read more: http://denverinfill.com/blog/2011/04/upcoming-uli-event-on-april-14-big-building-on-campus.html
Consumer spending rises. Read more: http://realtytimes.com/rtpages/20110404_realestateoutlook.htm
Wells Fargo exec on how to fix the mortgage mess. Read more: http://money.cnn.com/2011/04/04/real_estate/john_stumpf_mortgage.fortune/index.htm
Stapleton HGTV home to aid Urban Peak. Read more: http://insiderealestatenews.com/2011/03/stapleton-hgtv-home-to-help-urban-peak/
Stapleton No. 1 master-planned community. Read more: http://insiderealestatenews.com/2011/03/stapleton-no-1/
New community center coming to Heather Gardens. Read more: http://insiderealestatenews.com/2011/03/heather-gardens-getting-new-center/
Case-Shiller: Denver ranks sixth. Read more: http://insiderealestatenews.com/2011/03/case-shiller-denver-no-6/
$20 million apartment building on tap at CU. Read more: http://www.denverpost.com/breakingnews/ci_17717602