Colorado Residential Luxury Report - Quarter 3, 2017

LIV

RESIDENTIAL LUXURY REPORT January-September 2017

PURCHASING CONFIDENCE AMONG EMERGING LUXURY CONSUMERS Many emerging affluent consumers, defined as those with $250K USD - $1M USD in investable assets, have increasing confidence in the housing market and plan to purchase a home within the next three years.

EMERGING LUXURY CONSUMERS’ LIFESTYLE PREFERENCES Emerging luxury consumers have their eyes set on these property lifestyles for their luxury home purchase:

LUXURY MARKET AT A GLANCE - $1M+ The luxury real estate market continued to demonstrate growth in the third quarter of 2017, based on Buyers’ continued confidence in purchasing and investing in luxury real estate in Colorado. With Denver metro currently leading the nation in regard to the unique business, cultural and educational opportunities that are available to its residents, the metro area of Denver, and the state of Colorado as a whole, continue to be an excellent place to invest in luxury real estate.

LIV Sotheby’s International Realty’s Residential Luxury Report compares January-September 2017 statistics, to that of 2016, for single family homes and condos priced $1M and above in the areas we service; Denver Metro (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson) and the Resort communities of Eagle (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, Cordillera, etc.) and Summit County (Breckenridge, Frisco, Copper, Dillon, Silverthorne – data located at the end of this report).

Within the seven counties of Denver metro represented in this report, luxury property sales rose 19.5% year-over-year, from 1,234 homes sold in January - September 2016, to 1,475 homes sold during the same time period in 2017. Total dollar volume demonstrated a 19.3% increase year-over-year, surpassing $2.25B in January - September 2017, with average price per square foot increasing 3.1%, to $388.

Luxury home prices appreciated beyond expectations and mortgage rates remain consistently low, despite market perceptions that these rates will eventually rise. The Front Range of Colorado continues to gain notoriety internationally as an excellent investment opportunity, fueling demand in the luxury market even more. The ‘flight from coastal markets’ trend continues to emerge, with individuals from coastal metropolises drawn to Denver metro because of the socioeconomic and lifestyle opportunities it offers.

The luxury real estate market is projected to demonstrate continued growth for the remainder of 2017, as buyers continue to seek the Colorado lifestyle in a region they believe to be a sound investment.

DENVER METRO (INCLUDING BOULDER) January - September

2011

2012

2013

2014

2015

432

552

758

809

1,040

$269

$310

$325

$348

$352

204

309

155

111

103

$8,200,000

$7,500,000

$8,691,000

$5,950,000

$11,000,000

$661,697,294

$829,936,415

$1,156,560,711

$1,256,677,175

$1,569,293,444

January - September

2016

2017

% Change

Number of Properties Sold

1,234

1,475

19.5%

Average Price per Square Foot

$377

$388

3.1%

95

116

22.4%

$6,705,241

$8,116,000

21.0%

$1,894,534,695

$2,260,574,605

19.3%

Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume

Average Days on Market Highest Price Total Dollar Volume

INCLUDED COUNTIES: ADAMS ARAPAHOE BOULDER BROOMFIELD DENVER DOUGLAS JEFFERSON

RESIDENTIAL LUXURY REPORT JANUARY-SEPTEMBER 2017 | COLORADOMARKETREPORTS.COM Based on $1,000,000+ sales in Metropolitan Denver, Boulder, Eagle County and Summit County. Based on information from REColorado, IRES, LLC, Vail Board of Realtors® and SAR MLS. This representation is based in whole or in part on data supplied by REColorado, IRES, LLC, Vail Board of Realtors® and SAR MLS. REColorado, IRES, LLC, Vail Board of Realtors® and SAR MLS does not guarantee nor is in any way responsible for its accuracy. Data maintained by REColorado, IRES, LLC, Vail Board of Realtors® and SAR MLS may not reflect all real estate activity in the market.

LUXURY MARKET | MARKETS BY COUNTY

DENVER COUNTY January - September

2011

2012

2013

2014

2015

2016

Number of Properties Sold

122

166

225

230

324

394

508

28.9%

Average Price per Sq. Ft.

$357

$376

$416

$420

$442

$461

$468

1.6%

Average Days on Market

180

155

102

62

76

71

81

14.1%

$3,815,000

$5,400,000

$4,100,000

$4,925,000

$4,550,000

$5,600,000

$5,850,000

4.5%

$172,312,852

$244,276,077

$330,062,207

$335,685,794

$479,563,780

$591,674,711

$749,262,413

26.6%

Highest Price Total Dollar Volume

2017 % Change

ARAPAHOE COUNTY January - September

2011

2012

2013

2014

2015

2016

2017 % Change

Number of Properties Sold

99

126

173

167

191

200

212

6.0%

Average Price per Sq. Ft.

$326

$348

$359

$389

$394

$408

$411

0.9%

Average Days on Market

198

196

204

124

116

110

103

-6.4%

Highest Price

$8,200,000

$7,500,000

$7,000,000

$5,950,000

$11,000,000

$6,530,000

$6,000,000

-8.1%

Total Dollar Volume

$171,009,212

$221,838,139

$302,242,666

$314,383,011

$328,112,156

$353,799,451

$377,476,874

6.7%

DOUGLAS COUNTY January - September

2011

2012

2013

2014

2015

2016

Number of Properties Sold

66

78

121

135

151

169

234

38.5%

Average Price per Sq. Ft.

$328

$299

$325

$366

$344

$365

$377

3.5%

Average Days on Market

294

271

194

128

129

134

134

0.0%

$3,150,000

$3,000,000

$3,400,000

$4,000,000

$3,075,000

$6,705,241

$8,116,000

21.0%

$94,529,437

$106,165,713

$163,759,623

$193,809,099

$210,724,298

$246,398,380

$348,516,272

41.4%

Highest Price Total Dollar Volume

2017 % Change

JEFFERSON COUNTY January - September

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

36

34

46

61

91

116

129

11.2%

Average Price per Sq. Ft.

$308

$309

$330

$329

$339

$341

$384

12.6%

Average Days on Market

312

253

258

188

155

153

151

-1.3%

$2,575,000

$3,500,000

$8,691,000

$2,755,000

$3,350,000

$3,000,000

$5,400,000

80.0%

$49,705,601

$50,357,236

$73,740,845

$85,056,204

$122,037,020

$154,936,051

$181,434,602

17.1%

Highest Price Total Dollar Volume

RESIDENTIAL LUXURY REPORT JANUARY-SEPTEMBER 2017 | COLORADOMARKETREPORTS.COM

LUXURY MARKET | MARKETS BY COUNTY

BOULDER COUNTY January - September

2011

2012

2013

2014

2015

2016

Number of Properties Sold

105

145

187

201

269

334

364

9.0%

Average Days on Market

209

152

119

112

83

103

88

-14.6%

$4,313,200

$4,050,000

$4,550,000

$5,300,000

$4,900,000

$6,250,000

$6,250,000

0.0%

$168,940,192

$203,079,250

$279,045,170

$308,346,008

$407,300,757

$518,203,002

$565,722,694

9.2%

Highest Price Total Dollar Volume

2017 % Change

BROOMFIELD COUNTY January - September

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

0

1

5

9

2

10

15

50.0%

Average Price per Sq. Ft.

-

$276

$280

$309

$391

$392

$347

-11.6%

Average Days on Market

-

1,084

51

65

75

37

122

229.7%

Highest Price

-

$1,200,000

$1,610,200

$1,868,000

$2,900,000

$2,100,000

$3,420,350

62.9%

Total Dollar Volume

-

$1,200,000

$6,690,200

$11,229,059

$4,050,000

$14,250,250

$23,061,250

61.8%

January - September

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

4

2

1

6

11

11

13

18.2%

Average Price per Sq. Ft.

$296

$251

$237

$272

$290

$293

$343

16.8%

Average Days on Market

236

55

155

98

92

58

135

132.8%

$1,675,000

$2,000,000

$1,020,000

$1,750,000

$1,429,000

$1,880,000

$1,415,000

-24.7%

$5,200,000

$3,020,000

$1,020,000

$8,168,000

$17,505,633

$15,272,850

$15,100,500

-1.1%

ADAMS COUNTY

Highest Price Total Dollar Volume

KEY PURCHASING MOTIVATORS FOR EMERGING LUXURY CONSUMERS

I am at the right stage in my life for this type of purchase.

I want a home to fit a particular lifestyle.

I am doing well in my job currently.

I want to make a purchase like this for the benefit of my family.

U.S. U.K. INDIA

U.S. CHINA U.K. INDIA

U.S. U.A.E

CHINA

RESIDENTIAL LUXURY REPORT JANUARY-SEPTEMBER 2017 | COLORADOMARKETREPORTS.COM

RESORT LUXURY MARKET - $1M+ The resort luxury market remained robust at the January-September point of 2017, with the higher end of the market demonstrating a strong surge in activity. Sales are expected to rise as a direct result of individuals continuing to seek second homes in the mountains and resort communities for the lifestyle opportunities they provide, in addition to the continued vibrancy taking place in the Denver market.

The Vail Valley saw a higher volume of activity in the luxury market, with the number of properties sold increasing 6.2% from 276 properties sold in January - September 2016, to 293 properties sold in January - September 2017. A majority of sales activity took place in the 1 to 4-million-dollar range, with primarily domestic and Front Range buyers, and some purchasers from Latin America.

Average price per square foot held at $785, and average days on the market decreased 18.6% from 295 days on market in January September 2016 to 240 days in 2017, a good average time for the resort luxury market.

In Summit County, luxury sales demonstrated significant increase with the number of properties sold increasing 54.1% from 159 properties sold in January - September 2016, to 245 properties sold in January - September 2017. Average price per square foot decreased slightly, 4.7%, to $466 in January - September 2017, and average days on the market decreased 2.4% from 166 days in January - September 2016, to only 162 days in January - September 2017, an excellent timeframe for the resort luxury market. The proximity to the urban offerings of Denver metro, which is less than two hours away from Summit County, continues to position the area as a highly sought-after resort destination, specifically for those seeking close travel time between Denver and the recreational opportunities the mountain areas offer.

In summary, this report concludes that the luxury resort markets of Vail Valley and Summit County remain robust and competitive, with growth projected as we continue into the year-end selling season of 2017.

EAGLE COUNTY (VAIL VALLEY, AVON, BEAVER CREEK, BACHELOR GULCH, CORDILLERA, ETC.) January - September

2011

2012

2013

2014

2015

2016

Number of Properties Sold

157

195

192

231

261

276

293

6.2%

Average Price per Sq. Ft.

$828

$794

$707

$808

$796

$789

$785

-0.5%

Average Days on Market

359

321

334

309

274

295

240

-18.6%

$12,500,000

$14,100,000

$13,550,000

$19,000,000

$15,750,000

$14,692,500

$23,000,000

56.5%

$423,261,275

$561,655,751

$438,207,382

$639,055,893

$701,669,289

$644,636,924

$766,098,423

18.8%

Highest Price Total Dollar Volume

2017 % Change

SUMMIT COUNTY (BRECKENRIDGE, COPPER MOUNTAIN, FRISCO, DILLON, KEYSTONE, ETC.) January - September

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

84

93

102

110

148

159

245

54.1%

Average Price per Sq. Ft.

$382

$354

$424

$427

$493

$489

$466

-4.7%

Average Days on Market

307

240

174

197

172

166

162

-2.4%

3,275,000

5,570,130

3,400,000

3,640,593

3,825,000

5,675,000

4,200,000

-26.0%

$123,310,311

$140,397,916

$145,061,254

$164,123,170

$235,128,434

$246,785,540

$385,993,385

56.4%

Highest Price Total Dollar Volume

RESIDENTIAL LUXURY REPORT JANUARY-SEPTEMBER 2017 | COLORADOMARKETREPORTS.COM

Dream it. Find it. LIV it.

Pictured: 1860 Cresta Road, Edwards

The life you love.

The life you love.

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