Tale of two Denver summer real estate markets
Buyers are not competing like they used to for Denver real estate, that much is clear as summer settles in. Showings of great properties — priced right, in good condition and in great locations — have come way down. However, I’m seeing something different in the luxury market (more on that below).
For example, a few years ago, these cream puff properties (as us agents term these listings) would fetch 30 or more showings in the first weekend, along with multiple offers! Now, these will get three to eight showings and a single offer in a weekend, and that’s considered successful.
This is true even with depressed inventory, especially in the highly coveted $800,000 to $1.5 million price range, which, believe it or not, is first-time homebuyer territory in Denver, especially in its central neighborhoods.
The average Denver metro home price dropped 1.8% in May 2023 from the year previous to $789,911 while the average days on market for homes more than doubled from nine to 21, according to the Denver Metro Association of Realtors May report.
Source: Denver Metro Association of Realtors May 2023 report
However, I’m noticing a tale of two markets. For homes priced above a certain threshold, above approximately $2.7-3 million, the market is much hotter. At these ultra luxury price points, buyers are more likely to pay cash and thus are not impacted by rising interest rates.
For example, in Bonnie Brae, three high-priced homes all closed within a week recently. They are:
- 1235 South York, our great listing, which closed on May 31 for $3.87 million.
- 1129 South Williams Street, which closed on May 30 for $4.21 million, $210,000 above the $4 million list price. This is one of the top sells I’ve ever seen on a 6,250-square-foot lot.
- 815 South Medea Way, which closed on May 30 for $4 million,$125,000 over the $3.875 million list price.
Some of what’s driving this luxury demand is people continuing to move to Denver from out of state, in particular California, where property taxes are so high and where price differences can still be beneficial to them.
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From the selling perspective, sellers, particularly of homes not in the ultra luxury segment, and their agents should focus on maximizing every single showing. For example, this means agents focused on making sure buyers and their agents have access to view the properties, and having them staged and prepped appropriately.