Denver real estate stats reveal a tale of two markets. While city homes as a whole saw impressive price appreciation in the first six months of this year versus in 2017 at 11 percent, this appreciation is uneven.
Homes in luxury neighborhoods in particular are appreciating at far more modest rates. Cherry Creek North, for example, one of my core markets, saw an increase of just 2.4 percent in that time period.
Hunting hot neighborhoods, some buyers have turned to nearby luxury areas such as Belcaro and Bonnie Brae, which saw a 16.9 percent increase in average price year-over-year in the period.
Inventory levels reflect this.
Months of inventory (the amount of time it would take to sell current active listings at current demand levels) hit 12 months this month. That’s more than double the five months it was in August 2016.
Consider the double-list strategy
As summer winds down, it’s becoming clear that the luxury market is turning from a seller’s market into one favoring buyers. This high-end cooling has been a long time coming after years of frothy luxury buyer demand.
This means one thing for sellers in luxury neighborhoods like Cherry Creek: hit the market hard when you list. Buyers have a more discerning eye. With construction costs up (20 to 30 percent in last four years by some estimates), they’re also less likely to jump at a fixer-upper. Be ready!
For example, don’t throw out prices you hope to get, but work with a good, knowledgeable real estate agent to price the home accurately and competitively. Take the necessary steps to make the home look its absolute best such as: hire a color consultant, polish its curb appeal.
It’s also smart to consider testing the market by listing it this fall. If no buyers bite, take the home off the market before Thanksgiving, update it based on on-market feedback and list in late January.
Have any questions? I’m here to provide feedback. Also, you can check your home valuation at cherrycreekvalue.com or reach out to me to chat about your selling questions. I’d love to chat!