It’s no surprise the real estate market continues to perform well across all market segments. Days on Market are still low, inventory remains scarce while pricing remains strong although cooling slightly. Is
that the case in the luxury market as well? Let’s delve deeper into the current luxury market by evaluating three metrics:
- active inventory
- average sale prices
- days on market
According to the most recent statistics from Metrolist, the Denver market ended September 2021 with 584 properties above $1M active on the market. This number was a slight increase month over month from 578 in August 2021 and a signifigant decrease year over year from 758 in September 2020.
Average Sale Prices
September 2021 ended with average sale prices of properties over $1M at $1.634M, an increase month over month from $1.586M in August as well as an increase year over year from $1.555M in September 2020.
Days on Market
Arguably the most interesting metric of all, the Days on Market ending September 2021 was 27, up from 25 month over month in August - and 18 days in July - but down year over year from 51 in September 2020.
To summarize, in the luxury market sector inventory is down, sale prices are up, and days on market are up but still very low relative to historical trends. The statistics reflect the competitiveness that still exists
in the Denver luxury market and they depict the robust sellers’ market that is still in play. There is a plethora of cash in this market sector which gives buyers a competitive edge over buyers financing their
purchases and often the cash buyers are willing to escalate their offer prices in order to win in the bidding war because they have the freedom and the flexibility to do so without the concern about over
paying for a property.