This is a very interesting graph. This is Evergreen, Conifer and Morrison luxury homes (over $1,000,000) sold in the last 10 years. The average luxury home sale price is in green and the number of listings is in blue.
The reason this chart is interesting is because while the rest of the luxury market around the country has been seeing a dip, the Denver Foothills has seen an increase in average sale price in luxury homes. Not a huge increase but enough to see that this area is attracting money and people with it.
The number of listing is increasing along with the sale price. This is a good sign. Usually as inventory increases the sale price will decrease.
The luxury market is usually independent of the primary real estate market. Although it does have its ups and downs it is usually not as drastic as the primary market and doesn’t really rely strictly on the economy or interest rates. The reason is if a buyer can afford a $5 million home in an up economy they can still afford one if the economy takes a dip. Another reason is the luxury market isn’t flooded with investors in a downturn with people buying low. Luxury homes are not usually for investment purposes since they tend to increase in value they don’t appreciate at the rate the normal market does. The peaks and valleys are not as drastic.
The luxury market in the Denver Foothills will always be solid. It is close to DIA, the ski resorts and Denver. That makes for a great location for luxury home buyers. Evergreen will especially always attract the high end home buyer with all it has to offer.
Contact Orson Hill Realty today to list your luxury home or purchase your next mountain home.