Denver luxury home sales soar

The Denver housing market has received a significant amount of positive press recently, with home prices on the rise, upticks in new construction and a decline in foreclosure filings. The good news keeps rolling in for people looking at real estate in Denver. The Denver Business Journal recently cited an industry report that showed luxury home sales up 20 percent.

The report indicated that during the first eight months of this year, there were 325 sales transactions for homes listed at more than $1 million, adding up to roughly $492.1 million. This was 19 percent higher than the sales for the first eight months of 2011. In just the month of August, there were 45 sales transactions for luxury properties, totaling $63.46 million, significantly more than August 2011, which saw only 28 luxury properties sold.

The report further revealed that the amount of time a home stays on the market has decreased 7.7 percent when compared to last year. In August 2011, the average number of days on the market was 222. In August 2012, that number was down to an average of 205 days. However, the average sales price was observed to have decreased by 8.4 percent from last year, today averaging $1.41 million, down from $1.54 million in August 2011.

An article in the Denver Business Journal on September 18 cited another industry organization survey that revealed Denver was ranked No. 26 out of the 146 "most-searched markets," one spot higher than its ranking in July. The survey additionally revealed that the median listing price for homes for sale in Denver was $267,000, 6.8 percent higher than in August 2011. Compared to the national median price of $190,000, Denver's median price was more than 40 percent higher.

The survey detailed that Denver's inventory of homes for sale was down nearly 20 percent in August 2012 compared with 2011, with for-sale homes recorded at 7,894. The survey did not indicate how the median time homes stay on the market compared with last year, but it did show that in August 2012, median time on the market was 36 days, the same as in July.

Earlier in September, a CoreLogic report indicated that home prices in the Denver-Aurora-Broomfield area were up 8.4 percent in July when compared with last year. Excluding distressed homes, the Denver metro area saw a 7.3 percent increase over July 2011.