Luxury Real Estate in the Denver Metro Area Increased Over 2020 – Levels in 2021
The housing market in Colorado reached historic numbers regarding the sale price of homes and inventory has dwindled since the real estate boom in 2020 ignited by the pandemic.
New year-end market reports and year-end luxury reports comparing 2021 real estate performance to 2020’s has been released. The following entails Kentwood’s synopsis of year-end market trends in the Denver Metro Area.
In 2021, the average sale price for a single-family home in the Denver Metro Area increased by 19 percent to an average of $682,489. Single-attached homes also saw a similar price increase of 14.3%, increasing the average sale price to $428,825. Although it looked like the Denver Metro real estate market was going to slow down in comparison to the boom of 2020, the overall listings closed in the calendar year increased by 0.3 percent.
The Luxury Market of the Denver Metro area continues to show strength through an increase in home buying. The number of luxury properties sold in the Denver Metro area saw a drastic increase of 59.9 percent in 2021 compared to 2020 reaching a total of 4,200 homes. The average sale price of high-end listings in the area increased by 3.7 percent, totaling the average sale price of luxury homes to $1,613,563. The increase in properties sold and a marginal increase in average sale price contributed to a grand 65.7 percent increase in total dollar volume. Indicating that luxury real estate properties in the Denver Metro area accumulated $6,776,964,868 in 2021.
Multiple Denver Metro neighborhoods saw significant improvements in buying activity in 2021. The Huntington Trails/Lexington neighborhood had the largest percent incense in luxury properties sold over 2021 at 66.7 percent. The city of Denver sold 2,051 luxury homes in 2021, a 65.9 percent increase over 2020 and the most in Denver Metro. Washington Park East/Central neighborhood had the second-highest number of luxury real estate sales, totaling 146 homes sold in 2021.
The demand for homes in the Denver Metro area combined with low inventory levels contributed to the appreciation of average sale prices in many neighborhoods. The average sale price for luxury properties in the Polo Reserve neighborhood increased by 40.7 percent in 2021, averaging $2,899,375. The Cherry Hills Village homes sitting on more than one acre of land had the highest average sale price, at $4,264,858. Similarly, homes in Greenwood Village West sitting on more than one acre of land appreciated by 36.8 percent, closing at $3,413,539 on average. Conversely, luxury homes in the Mayfair/Montclair neighborhood had the lowest average sale price of 2021. Homes in this neighborhood closed at an average of $1,352,158.
One big takeaway beyond the increase in the number of luxury properties sold and the average sale price of those homes is the average amount of days on the market. Of the 20 neighborhoods that were included in the year-end luxury report, only two neighborhoods had properties that stayed on the market longer in 2021 compared to 2020. In the Denver Metro area luxury homes remained on the market for an average of 27 days in 2021. A 49.1 percent decrease compared to 2020. The luxury properties in the city of Denver stayed on the market for an average of 29 days, a 31 percent decrease from 2020.
The strength of the real estate market in 2021 is a good indicator that this year may also yield some great opportunities for buyers and sellers looking for their dream home in Colorado.