The luxury Denver real estate market is more of Buyer’s market. Granted, the overall market is more of Seller’s market. Some home listings are still selling over list price with multiple offers within days of first being listed on the multiple listing service.
This was the conclusion reached during a recent seminar I attended for real estate agents’continuing education. The seminar was presented by Lon Welsh, Broker/Owner of Your Castle Real Estate renown real estate statistician. In fact, Lon has blogged here on the All Denver Real Estate Blog years ago.
Luxury Denver Homes Get Fewer Showings
All real estate is segmented. The overall Denver market still brisk and competitive for buyers. But, the luxury segment, especially homes priced over $1.5, m is much slower. In fact, recent statistics indicate that showings for all luxury homes over $1m average about 1/3 the number as showings for the overall real estate market.
Obviously, there are fewer buyers shopping for homes priced so high. And, fewer buyers in that price range end up actually purchasing a higher priced home. But, they might be just curious to see how they look inside.
Luxury Homes Sell Slower
Days on the Market (DOM) is much greater for luxury Denver real estate. Especially, when luxury homes are overpriced, they can last on the market for over 100 days on the market before selling. That’s up to 5 times longer than the average home listed for sale in the Denver MLS system. And , ultra-luxury homes homes above $1.5m can linger for much longer. Sometimes, those beauties can take years to sell when overpriced.
Lon explained that the responsibility of a good Realtor is to explain all this in advance to Sellers. Too often Sellers believe that the red hot statistics in the MLS and on the news applies to all points. Sellers need to understand that selling a luxury home is a skill that can take a longer period of time. So, listing agreements to a anticipate that and provide a longer listing period.
Entire Real Estate Market vs Luxury Real Estate
The entire Denver real estate market has recovered all of its losses since 2006. Home prices have increased dramatically every year since 2011. The luxury Denver real estate market has also recouped all of its losses. But, the gains have not been so impressive. And, those high prices occurred slightly more recently. Lon Welsh’s class went into details. Check out the video excerpt.
Finally, I have always enjoyed Lon’s classes. He is a statistician by background. But, now as a Broker Owner of Your Castle Real Estate, he can capply his education and backgound to teaching agents how to interpret and present differences in real estate markets. Thanks Lon for a great class.