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June 06, 2016 / Posted in Condos, Denver

Luxury home sales increased 28 percent in May, with 22 homes topping $2 million mark

The 168 high-end sales in May was flat compared to the same month last year

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Luxury home sales were flat in May year-over-year in metro Denver, according to a Coldwell Banker Residential Brokerage report.

Sales of homes priced higher than $1 million rose to 168 in May rose from 131 in April, a 28.2 percent increase.

“That is a massive number of million-plus-dollar homes,” said Chris Mygatt, president and COO of Coldwell Banker Residential Brokerage.

He said the flat rate is still a positive indicator because last year’s high in May was an anomaly, and the May total was up 37 from April.

The median sale price dipped 6.3 percent from a year ago to $1,296,000. That figure is also down from April.

In May, there were 22 sales over $2 million and six sales topping $3 million. The most expensive sale was a $6.7 million five-bedroom, five-bathroom home of about 15,500 square feet in Highlands Ranch.

Denver saw the most million-dollar sales with 51. Boulder followed with 35, and Cherry Hills Village posted 11.

The number of luxury homes sold in 2016 is forecast to beat last year’s figure by 12 percent, based on tracking so far this year, Mygatt said.

The luxury market holds consistently with the rest of the market, he said.

Luxury home sales make up about the top 5 percent to 6 percent of units sold in Denver metro. It’s a small segment of the overall market but an important indicator because of the volume of business done within that price point.

Homes came off the market faster than they did a year ago, down to 84 days from 90 days a year ago. Time on the market is a driver analysts watch very carefully, because it’s a indicator of demand.

Properties in the luxury market sit longer than the Denver average of about 33 days because luxury homebuyers are more selective and transactions take longer, Mygatt said.

Denver’s housing market leads the nation in value appreciation, according to a Denver Post report Tuesday.