Luxury Home Sales Soar

Luxury home sales in the Denver metro area jumped sharply in December compared to a year ago as the luxury market gained momentum heading into the new year, according to a report released today by Coldwell Banker Residential Brokerage.

A total of 51 homes sold for more than $1 million in the Denver Area in December, up 54.5 percent from the 33 that changed hands in December 2009. Sales were also up nearly 16 percent from November. Independent broker Gary Bauer released a report last week, showing a similar trend. Both Coldwell Banker and Bauer used data from Metrolist, publisher of the Multiple Listing Service.

The median sale price of million-dollar homes edged higher in December from November, reaching $1.25 million, up from $1.23 million the previous month, according to Coldwell Banker. However, the median was down 7.4 percent from last year's level of $1.35 million.

"There definitely has been a lot more optimism in the market lately," said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. "High-end buyers are starting to feel more confident about the economic recovery, both in the U.S. and here in the Denver area."

Mygatt added that buyers in general are realizing that there are unusually good opportunities in the market. "This is a rare situation where you still have interest rates near record low levels at the same time that home prices are extremely affordable and inventory is plentiful. I think buyers understand that these conditions won't last forever, especially as the economy gains momentum."

Some key findings from this month's Coldwell Banker Residential Brokerage luxury report:

*The most expensive sale in the Denver area in December was a five-bedroom, nine-bath 9,270-square-foot home in Cherry Hills Village that sold for $3.1 million.
*Denver boasted the most million-dollar sales with 11, followed by Boulder with 10, Cherry Hills Village with six and Castle Rock with four.
*Sellers on average received 90.32 percent of their asking price, up from 83.87 percent a year ago and 89.27 percent the previous month.
*It took an average of 148 days to sell a million-dollar home in the area, up from 145 days last year but down from 151 days the previous month.

CNN Money.com Colorado Springs is ranked number 8 in the country to most likely rebound from the housing crisis.

Colorado Springs, Colo.

Median home price: $220,000

Drop since market peak: 12%
Forecast gain by 9/2012: 2.9%

Demand for homes is still strong in Colorado Springs, according to Chris Mygatt, president of Coldwell Banker Residential Brokerage Colorado. The area's economy has been steady, thanks to the stabilizing effects of government jobs, especially connected with the Air Force Academy and military bases.Demand for housing has grown along with the population. That rose more nearly 17% from 2000 through 2009, faster than the national average of just over 9%.
Mygatt credits the Springs' popularity to the mild, four-season climate, natural beauty and proximity to the cultural and entertainment attractions of nearby Denver. Affordability is a big factor as well. You can buy a fine, three-bedroom, two-bath house in a good neighborhood for about $230,000. Those prices will remain flat this year, according to Fiserv's forecast, and pick up in 2012, rising 3.6% in the 12 months ending Sept. 30.