RESIDENTIAL LUXURY REPORT |
2018
RESIDENTIAL LUXURY REPORT introduction Welcome to luxury real estate in Colorado. As the Colorado luxury real estate market continues to evolve, LIV Sotheby’s International Realty remains committed to helping consumers make sound financial decisions when it comes to the purchase or sale of a luxury home. To clearly outline the performance of the 2017 luxury real estate market in Colorado, LIV Sotheby’s International Realty has created a Residential Luxury Report, which compares January through December 2017 statistics, to those of 2016, for single family homes and condos priced $1M and above in Denver Metro (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson) and the Resort communities of Eagle County (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, etc.) and Summit County (Breckenridge, Frisco, Copper, Dillon, Silverthorne, etc.). In addition to the analysis of local, county-wide luxury market data, the report also includes powerful statistics about luxury consumers around the world (depicted in infographics throughout the report), to help consumers make better decisions whether buying or selling a luxury home. *Enjoy a full analysis of the performance of the resort luxury market at the end of the report.
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In LIV Sotheby’s International Realty’s Residential Luxury Report, January through December 2017 statistics, are compared to those of 2016, for single family homes and condos priced $1M and above in Denver Metro (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson). With Denver metro and Boulder consistently ranked as some of the top places to live, work, and play, in the nation, the luxury real estate market in the metro area of Denver and Boulder, are poised for continued growth in 2018, based on the 2017 luxury real estate market’s stellar performance. The 2017 Denver metro and Boulder luxury real estate market delivered excellent results, with appreciation in both the number of properties sold and average sales price taking place across the board. Total dollar volume sold increased more than 20% year-over-year, with increased demand for luxury home purchases stemming from buyers’ continued confidence in both the national economy and desire to purchase luxury property in a state they believe offers an excellent investment opportunity. Denver metro and Boulder remain leaders in education, and with Colorado’s unemployment rate hovering at just under 4%, the vibrant local economy serves as the leading catalysis, drawing new residents to the state. Within the seven counties of Denver metro represented in this report, luxury property sales rose 22.1% year-over-year, from 1,610 homes sold in January through December 2016, to 1,966 homes sold during the same time period in 2017. Total dollar volume demonstrated a 21.6% increase year-over-year, surpassing $3B in 2017- the highest volume of sales to date. As Colorado’s real estate market continues to evolve, the luxury sector is projected to demonstrate continued growth in 2018, as a result of buyers’ continued confidence in both the national economy and purchasing luxury property in a state they believe to be a sound investment.
DENVER METRO (INCLUDING BOULDER) January – December Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume
2011
2012
2013
2014
2015
2016
2017
% Change
547
744
968
1,086
1,373
1,610
1,966
22.1%
$329
$312
$335
$349
$371
$372
$386
3.7%
206
243
159
115
107
99
115
16.0%
$8,200,000
$7,500,000
$7,000,000
$5,850,000
$11,000,000
$7,755,285
$8,116,000
4.7%
$813,931,695
$1,130,012,894
$1,472,661,610
$1,656,108,079
$2,085,834,242
$2,475,693,801
$3,009,330,827
21.6%
INCLUD ED COUNTIES:
A DA MS
A RA PA H OE
BOU L D E R
B ROOMF IE L D
DENVER
D OUG L AS
J E F F E RSO N
RESIDENTIAL LUXURY REPORT livsothebysrealty.com
2018 • COLORADOMARKETREPORTS.COM
DENVER
January – December
2011
2012
2013
2014
2015
2016
2017
% Change
156
217
297
322
449
524
682
30.2%
$365
$382
$415
$416
$455
$462
$470
1.7%
179
153
94
70
71
74
84
13.5%
$3,815,000
$5,400,000
$4,375,000
$4,925,000
$4,550,000
$7,000,000
$6,500,000
-7.1%
$220,147,191
$324,704,119
$439,762,640
$466,936,127
$661,047,704
$787,533,164
$1,024,648,720
30.1%
2011
2012
2013
2014
2015
2016
2017
% Change
115
183
213
212
246
262
274
4.6%
$322
$352
$359
$380
$398
$400
$417
4.1%
193
178
201
124
116
113
106
-6.2%
$8,200,000
$7,500,000
$7,000,000
$5,850,000
$11,000,000
$6,530,000
$6,000,000
-8.1%
$194,859,212
$318,370,455
$367,820,375
$381,605,285
$432,852,929
$455,920,063
$488,898,414
7.2%
2011
2012
2013
2014
2015
2016
2017
% Change
87
103
152
180
186
234
313
33.8%
$325
$317
$326
$363
$344
$364
$384
5.3%
295
239
184
141
134
134
135
0.7%
$3,150,000
$3,050,000
$3,400,000
$4,000,000
$3,075,000
$6,705,241
$8,116,000
21.0%
$124,924,511
$140,088,435
$208,232,028
$255,955,232
$258,038,249
$338,463,555
$460,651,187
36.1%
2011
2012
2013
2014
2015
2016
2017
% Change
48
52
56
77
118
150
181
20.7%
$298
$318
$319
$331
$356
$335
$382
14.0%
332
267
253
193
149
157
149
-5.1%
Highest Price
$2,575,000
$3,900,000
$3,200,000
$2,755,000
$3,350,000
$3,000,000
$5,400,000
80.0%
Total Dollar Volume
$66,623,601
$77,288,359
$78,054,845
$105,595,665
$159,990,825
$199,899,291
$248,292,748
24.2%
Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price
ARAPAHOE
Total Dollar Volume
January – December Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume
DOUGLAS
January – December Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price
JEFFERSON
Total Dollar Volume
January – December Number of Properties Sold Average Price per Square Foot Average Days on Market
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BROOMFIELD
BOULDER
January – December
2011
2012
2013
2014
2015
2016
2017
% Change
Number of Properties Sold
136
184
239
273
352
416
479
15.1%
Average Days on Market
203
153
126
119
87
102
90
-11.8%
$2,790,000
$4,750,000
$6,432,495
$5,300,000
$6,300,000
$7,755,285
$6,700,000
-13.6%
$200,477,180
$262,971,526
$364,644,490
$416,463,461
$542,659,432
$659,629,628
$737,588,008
11.8%
2011
2012
2013
2014
2015
2016
2017
% Change
1
2
7
14
6
13
19
46.2%
$365
$235
$306
$340
$386
$376
$339
-10.0%
2
580
57
67
58
58
110
89.7%
Highest Price
$1,700,000
$1,220,000
$1,610,200
$2,550,000
$2,900,000
$2,100,000
$3,420,350
62.9%
Total Dollar Volume
$1,700,000
$2,420,000
$9,127,232
$19,174,309
$11,095,103
$18,975,250
$27,471,250
44.8%
2011
2012
2013
2014
2015
2016
2017
% Change
4
3
4
8
16
11
18
63.6%
$296
$265
$283
$266
$287
$293
$322
9.8%
236
43
165
97
115
58
130
124.1%
Highest Price
$1,675,000
$2,000,000
$1,741,000
$1,750,000
$1,750,000
$1,880,000
$1,650,000
-12.2%
Total Dollar Volume
$5,200,000
$4,170,000
$5,020,000
$10,378,000
$20,150,000
$15,272,850
$21,780,500
42.6%
Highest Price Total Dollar Volume
January – December Number of Properties Sold Average Price per Square Foot Average Days on Market
ADAMS
January – December Number of Properties Sold Average Price per Square Foot Average Days on Market
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 livsothebysrealty.com
2018 • COLORADOMARKETREPORTS.COM
The resort luxury real estate market experienced excellent results at year-end 2017, with year-over-year price appreciation and an increased number of properties sold across the board in both Eagle (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, etc.) and Summit County (Breckenridge, Frisco, Copper, Dillon, Silverthorne, etc.). Located less than two hours away from Denver metro, Colorado’s world-class resort communities continue to draw both domestic and international buyers seeking close travel time between the bustling metropolis of Denver and the year-round recreational opportunities the mountain resort areas offer. The higher end of the market demonstrated a surge in activity, and sales are expected to rise in 2018 as a direct result of individuals continuing to seek homes in resort communities for the lifestyle opportunities they provide, coupled with the continued vibrancy taking place in the Denver market. In Eagle County, the luxury market experienced a high volume of activity in 2017, with the number of properties sold increasing 6.8%, to 407 properties sold in January through December 2017, compared to just 381 properties sold in January through December 2016. Many sales took place in the 1 to 4-million-dollar range, with most buyers coming from the Front Range and internationally, from Latin America. Several eye-popping, off-market (outside of MLS) sales also took place in 2017; a $14,600,000, sale in August 2017, followed a $28,700,000 sale that took place just days later. These significant private sales serve as a testament to the strength of the Vail Valley real estate market. Average price per square foot increased 3.7% year-over-year, and average days on the market decreased 19%, from 289 days in January through December 2016 to just 234 days in 2017, a good time frame for the resort luxury market, where homes typically stay on the market longer. The near 20% decrease in number of days on the market indicates consumers’ continued confidence in the Vail Valley real estate market, and willingness to spend more to purchase homes they truly desire. In Summit County, luxury sales demonstrated significant increase with the number of properties sold increasing 46.9%, from 228 properties sold in January through December 2016, to 335 properties sold in January through December 2017. Average days on the market decreased 11.4% from 166 days in January through December 2016, to only 147 days year-over-year, an excellent timeframe for the resort luxury market. The luxury resort markets of Eagle County and Summit County remain robust and competitive, with growth projected as we continue into 2018.
EAGLE
January – December
2011
2012
2013
2014
2015
2016
2017
% Change
241
283
277
329
348
381
407
6.8%
$793
$792
$728
$818
$797
$760
$788
3.7%
357
318
309
298
298
289
234
-19.0%
Highest Price
$12,500,000
$14,100,000
$13,550,000
$19,000,000
$15,750,000
$17,500,000
$23,000,000
31.4%
Total Dollar Volume
$640,649,775
$799,893,595
$671,350,199
$912,487,293
$921,337,439
$886,111,174
$1,065,294,461
20.2%
2011
2012
2013
2014
2015
2016
2017
% Change
100
111
131
144
196
228
335
46.9%
$411
$365
$426
$442
$498
$494
$469
-5.1%
296
253
187
198
179
166
147
-11.4%
Highest Price
$2,849,000
$5,570,130
$3,400,000
$3,640,593
$3,900,000
$5,675,000
$6,100,000
7.5%
Total Dollar Volume
$154,136,121
$177,679,817
$193,137,198
$224,953,302
$320,441,416
$357,616,680
$542,151,792
51.6%
Number of Properties Sold Average Price per Square Foot Average Days on Market
SUMMIT
January – December Number of Properties Sold Average Price per Square Foot Average Days on Market
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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:
RESIDENTIAL LUXURY REPORT livsothebysrealty.com
YEAR-END 2017 • COLORADOMARKETREPORTS.COM
The life you love.
livsothebysrealty.com | 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速 and SAR MLS. This representation is based in whole or in part on data supplied by REColorado, IRES, LLC, Vail Board of Realtors速 and SAR MLS. REColorado, IRES, LLC, Vail Board of Realtors速 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速 and SAR MLS may not reflect all real estate activity in the market.