We all know that when a luxury home is on the market, it’s going to be there for a little while. It’s a smaller group of buyers, and to afford a luxury home and everything that comes with it, you have to have the serious funds for it. They’re obviously not for everyone. Not to mention, what happens if you lose your phone in one of your 15 rooms? Even worse – what if it’s on vibrate and you can’t hear it ring? Or what if it dies? It could be lost for days and who can afford to take that risk?
Nevertheless, Kentwood Real Estate (my brokerage) came out with an analysis of the luxury market in February and it surprised all of us. Luxury home sales were off the charts last month! Kentwood reported that the luxury market surged by 84 percent in February of 2015 in comparison to February of 2014. Well, this has us scratching our heads because sales are typically lower in the winter than in spring or summer. Kentwood reports that in February 2015, there were 46 single-family homes that sold for $1 million or more, totaling $71.65 million. February 2014 only had 25 homes that sold for $1 million or more, for a grand total of $38.32 million. Not only did more homes close, but the dollar amount rose 87% year over year.
Our very own Dee Chirafisi, broker and co-owner of Kentwood City Properties, stated that while winter is usually a factor in home sales, this year it definitely wasn’t. She pointed out that what sold in February is what went under contract in December and January, which is usually a pretty slow time. Here, we experienced the same sort of sales push in late December. We had more properties go under contract at the end of December than we did in November/early December combined.
We’re sure this is because Denver is so hot right now. Neighborhoods like LoHi and West Highlands are only continuing to grow with no signs of stopping. Sloan’s Lake is a neighborhood that is growing rapidly and will continue to as the new St. Anthony’s area builds up. We even have a new development over there!
The market is staying really tough for buyers. If you don’t act on a home quickly, or submit an offer that’s at or above list price, you’re more than likely going to miss out. In this market, having an experienced agent really makes a difference. They will tell you exactly what to do to make sure your offer is at the top of the stack. There just isn’t enough inventory to support all of the buyers in the market right now. This doesn’t mean there aren’t great finds out there – you just have to be quick about it whether you’re a luxury home buyer, or any one else! Contact me: firstname.lastname@example.org and we’ll help you find the home that’s right for you.