LIV SIR Luxury Report Mid-Year 2017

Page 1

LIV

RESIDENTIAL LUXURY REPORT Mid-Year 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+ In the first six months of 2017, the luxury home market has witnessed a tremendous response in luxury sales since the presidential election. The trajectory of growth is evidenced by both local and global buyers’ continued confidence in purchasing and investing in luxury real estate, and increasing confidence in the rallying stock market and vibrant economy. LIV Sotheby’s International Realty’s Residential Luxury Report compares mid-year 2017 (January - June) 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). Within the seven counties of Denver metro represented in this report, luxury property sales rose 26.5% year-over-year, from 774 homes sold in January through June 2016, to 979 homes sold during the same time period in 2017. Total dollar volume demonstrated a 25.6% increase year-over-year, reaching nearly $700M in January through June 2017, and average price per square foot increased 2.3%, to $384. Luxury home prices appreciated beyond expectations and mortgage rates remain low, despite market perceptions that these rates will continue to rise. The Front Range of Colorado continues to gain notoriety internationally as an excellent investment opportunity, fueling demand in the luxury market even more. Additionally, a ‘flight from coastal markets’ trend is emerging, where Colorado is competing as one of the most desirable places to live in the country, along with coastal metropolises including San Francisco, Boston and New York. The remainder of the summer selling season within the luxury real estate market is projected to demonstrate continued growth, as buyers continue to seek the Colorado lifestyle in a region they believe to be a sound investment. *Enjoy a full analysis of the performance of the resort luxury market at the end of the report.

DENVER METRO (INCLUDING BOULDER) January through June Number of Properties Sold Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume

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

2011

2012

2013

2014

2015

277

350

467

502

646

$262

$266

$317

$343

$366

215

316

167

117

111

$6,180,000

$5,250,000

$8,691,000

$5,950,000

$4,650,000

$420,043,872

$520,806,242

$703,219,812

$785,025,622

$967,880,809

2016

2017

% Change

774

979

26.5%

$375

$384

2.3%

ARAPAHOE

98

124

26.1%

BROOMFIELD

$6,705,000

$6,700,000

-0.1%

$1,182,107,321

$1,484,704,896

25.6%

INCLUDED COUNTIES: ADAMS BOULDER DENVER DOUGLAS JEFFERSON

RESIDENTIAL LUXURY REPORT MID-YEAR 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 through June

2011

2012

2013

2014

2015

2016

Number of Properties Sold

76

102

144

142

201

249

337

35.3%

Average Price per Sq. Ft.

$344

$367

$403

$432

$444

$451

$467

3.4%

Average Days on Market

201

182

122

70

85

75

85

13.3%

$2,500,000

$5,250,000

$4,100,000

$4,925,000

$4,550,000

$5,439,000

$5,850,000

7.6%

$103,537,099

$150,638,022

$211,095,072

$214,887,454

$295,360,948

$369,507,709

$495,860,762

34.2%

Highest Price Total Dollar Volume

2017 % Change

ARAPAHOE COUNTY January through June

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

62

76

98

109

114

124

143

15.3%

Average Price per Sq. Ft.

$327

$339

$341

$385

$381

$408

$412

1.0%

Average Days on Market

187

188

244

125

125

103

103

0.0%

$6,180,000

$4,500,000

$7,000,000

$5,950,000

$4,650,000

$6,530,000

$6,000,000

-8.1%

$101,832,498

$126,167,747

$161,378,148

$209,477,016

$191,195,514

$222,674,759

$253,882,779

14.0%

Highest Price Total Dollar Volume

DOUGLAS COUNTY January through June

2011

2012

2013

2014

2015

2016

2017 % Change

Number of Properties Sold

42

50

72

78

89

108

151

39.8%

Average Price per Sq. Ft.

$309

$298

$324

$336

$341

$364

$379

4.0%

Average Days on Market

348

325

225

147

167

138

149

8.0%

Highest Price

$3,050,000

$3,000,000

$2,550,000

$4,000,000

$2,750,000

$6,705,000

$3,600,000

-46.3%

Total Dollar Volume

$61,191,450

$69,326,568

$95,258,704

$110,900,422

$124,816,315

$160,954,591

$211,963,193

31.7%

JEFFERSON COUNTY January through June

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

26

21

30

41

55

61

91

49.2%

Average Price per Sq. Ft.

$312

$315

$333

$323

$354

$332

$390

17.2%

Average Days on Market

353

280

283

187

141

188

165

-12.2%

$2,575,000

$2,600,000

$8,691,000

$2,755,000

$3,350,000

$2,914,000

$5,400,000

85.3%

$35,595,903

$30,043,105

$51,320,622

$56,291,250

$74,952,720

$80,444,626

$129,748,352

61.3%

Highest Price Total Dollar Volume

RESIDENTIAL LUXURY REPORT MID-YEAR 2017 | COLORADOMARKETREPORTS.COM


LUXURY MARKET | MARKETS BY COUNTY

BOULDER COUNTY January through June

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

69

100

118

122

178

221

238

7.7%

216

156

135

128

78

104

86

-17.3%

$4,150,000

$3,100,000

$4,400,000

$4,000,000

$4,495,000

$3,950,000

$6,700,000

69.6%

$114,861,922

$143,430,800

$177,697,066

$180,830,421

$268,651,312

$332,940,786

$369,766,210

11.1%

Average Days on Market Highest Price Total Dollar Volume

BROOMFIELD COUNTY January through June

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

0

1

4

5

2

7

9

28.6%

Average Price per Sq. Ft.

-

$276

$262

$309

$391

$393

$317

-19.3%

Average Days on Market

-

1,084

5

60

75

51

112

119.6%

Highest Price

-

$1,200,000

$1,610,000

$1,310,099

$2,900,000

$2,100,000

$1,975,000

-6.0%

Total Dollar Volume

-

$1,200,000

$5,450,200

$5,721,059

$4,050,000

$10,300,000

$12,123,100

17.7%

January through June

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

2

0

1

5

7

7

10

42.9%

Average Price per Sq. Ft.

$279

-

$237

$274

$287

$301

$337

12.1%

Average Days on Market

198

-

155

105

107

74

165

123.0%

Highest Price

$1,675,000

-

$1,020,000

$1,750,000

$1,429,000

$1,376,000

$1,250,000

-9.2%

Total Dollar Volume

$3,025,000

-

$1,020,000

$6,918,000

$8,854,000

$9,634,850

$11,360,500

17.9%

ADAMS COUNTY

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 MID-YEAR 2017 | COLORADOMARKETREPORTS.COM


RESORT LUXURY MARKET - $1M+ The resort luxury market remained robust at the mid-year point of 2017, with the higher end of the market demonstrating a strong surge in activity since the election, which resulted in a very busy winter selling season dotted with record sales. The momentum from a strong winter sales season has carried over into the summer, with sales expected to rise- a direct result of a rallying stock market and a vibrant Denver economy. The Vail Valley saw a higher volume of activity in the luxury market, with the number of properties sold increasing 21.8% from 156 properties sold in January through June 2016, to 190 properties sold in January through June 2017. A majority of sales activity took place in the 1 to 4 million dollar range, with primarily domestic and Front Range buyers. Average price per square foot held at $841, and average days on the market decreased 2.9% from 274 days on market in January through June 2016 to 266 days in 2017, an improved average time for the resort luxury market. In Summit County, luxury sales demonstrated significant increase with the number of properties sold increasing 21.8% from 81 properties sold in January through June 2016, to 149 properties sold in January through June 2017. Average price per square foot increased 11.5%, to $480 in January through June 2017, and average days on the market decreased 20% from 230 days in January through June 2016, to only 184 days in January through June 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 rest of the summer and fall selling season.

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

2011

2012

2013

2014

2015

2016

Number of Properties Sold

108

124

119

161

163

156

190

21.8%

Average Price per Sq. Ft.

$901

$872

$703

$833

$856

$850

$841

-1.1%

Average Days on Market

250

285

270

296

288

274

266

-2.9%

$12,500,000

$14,100,000

$13,550,000

$19,000,000

$15,750,000

$14,000,000

$23,000,000

64.3%

$325,725,275

$382,528,751

$268,389,100

$459,530,231

$454,338,449

$354,880,454

$539,492,173

52.0%

Highest Price Total Dollar Volume

2017 % Change

SUMMIT COUNTY (BRECKENRIDGE, COPPER MOUNTAIN, FRISCO, DILLON, KEYSTONE, ETC.) January through June

2011

2012

2013

2014

2015

2016

2017

% Change

Number of Properties Sold

46

40

52

58

81

81

149

84.0%

Average Price per Sq. Ft.

$404

$342

$452

$440

$496

$431

$480

11.5%

Average Days on Market

340

269

280

244

202

230

184

-20.0%

$2,685,000

$3,742,500

$3,400,000

$3,640,593

$3,700,000

$5,675,000

$4,200,000

-26.0%

$71,882,294

$61,654,928

$79,314,236

$89,713,292

$130,900,012

$134,930,773

$248,395,497

84.1%

Highest Price Total Dollar Volume

RESIDENTIAL LUXURY REPORT MID-YEAR 2017 | COLORADOMARKETREPORTS.COM


Dream it. Find it. LIV it.

Pictured: 223 Beaver Dam Road, Vail

The life you love.


The life you love.

coloradomarketreports.com | livsothebysrealty.com