Denver sees an emerging luxury home pricing trend
The Denver luxury home market has slowly softened over the last few years, and some high-end home sellers have responded by hitting the market at much lower list prices.
I wouldn’t call this a trend … yet, but it’s beginning to happen in my core market of Cherry Creek (as well as other parts of Denver) and is something luxury sellers and buyers should begin looking out for.
A Cherry Creek North gem at 537 Steele Street provides an example. The beautiful four-bed, seven-bath, 7,189-square-foot stone and stucco home went under contract at $2.75 million, the price the home hit the market in September.
The home went under contract in just 17 days, which is fast for Denver luxury homes, which covers those priced at $1.5 million and above.
537 Steele Street, 4 bed, 7 bath, 7,189 square feet
Based on nearby comps, the sellers could have easily priced the home at $3.5 million but they decided to price it lower to simplify and accelerate the sale.
421 Madison Street is one comp. The three-bedroom, five-bathroom, 5,880-square-foot Cherry Creek home sold for $3.65 million in October, but was on the market for 108 days.
421 Madison Street, 3 bed, 5 bath, 5,880 square feet
I’m seeing more sellers of luxury homes price below what comps suggest they can fetch to facilitate a more straightforward sale. Of course, sellers always have different goals, but this emerging trend suggests that those wanting a quicker sale, should price their home competitively out of the gate.
Buyers of high-end homes, on the other hand, have a little more leverage to negotiate and find better deals.
Have a question about selling or buying a high-end Cherry Creek home. Reach out for a free consultation.