LIV SIR Luxury Report Mid-Year 2018

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RESIDENTIAL LUXURY REPORT |

Mid-Year 2018


RESIDENTIAL LUXURY REPORT introduction As the Colorado luxury real estate market continues to evolve, LIV Sotheby’s International Realty remains committed to helping consumers make sound financial decisions for purchasing or selling a luxury home. To clearly outline the performance of the luxury real estate market in Colorado, LIV Sotheby’s International Realty produces a quarterly Residential Luxury Report, which compares January through June 2018 statistics to those of 2017 for single family homes and condos priced $1 million and above. The report analyzes luxury sales by county, including Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson Counties of Denver Metro, and the resort communities of Eagle County (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, etc.) and Summit County (Breckenridge, Frisco, Copper Mountain, Dillon, Silverthorne, etc.). In addition to the analysis of local, county-wide luxury market data, the report also includes statistics on emerging luxury consumers’ lifestyle preferences and purchasing confidence from around the world. *Enjoy a full analysis of the performance of the resort luxury market, located at the end of the report.

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Continuing to prove as a strong economic market, the Denver Metro (Adams, Arapahoe, Broomfield, Denver, Douglas, Jefferson), including Boulder, is poised for a promising fall season for luxury real estate. Single family homes and condos priced $1 million and above in this luxury sector are projected to demonstrate continued growth throughout Quarter 3 of 2018. Buyers and sellers alike sustain confidence in Colorado’s economy, creating a rise in the market’s performance. The January through June 2018 Denver Metro and Boulder luxury real estate market delivered excellent results, with a considerable increase of 24.9% of the number of properties sold. In addition, the total dollar volume increased an outstanding 28.5% year-over-year. Unemployment rate remains low, 3.2% for Denver and 2.4% for Boulder, providing more individuals with the opportunity to invest in real estate as consumer confidence continues to trend upward. Buyers must be prepared to act quickly, with the average days on market currently at an all-time low at just under three months (88 days), dropping 28.7% from 2017. Interesting to note in the luxury sector, mid-year numbers for 2018 indicate significant growth of price appreciation for properties under $1 million (30% increase for homes priced between $750K-$999K), while properties over $1 million remain steady at an average price appreciation of only 2.6%. These flat prices provide luxury buyers with a motivating and unique opportunity.

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

2012

2013

2014

2015

2016

2017

2018

% Change

350

467

502

646

774

982

1,227

24.9%

$266

$317

$343

$366

$375

$384

$378

-1.5%

316

167

117

111

98

123

88

-28.7%

$5,250,000

$8,691,000

$5,950,000

$4,650,000

$6,705,000

$6,700,000

$8,000,000

19.4%

$520,806,242

$703,219,812

$785,025,622

$967,880,809

$1,182,107,321

$1,488,564,896

$1,912,952,254

28.5%

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

MID -YEAR 2018 • COLORADOMARKETREPORTS.COM


DENVER

January through June

2012

2013

2014

2015

2016

2017

2018

% Change

102

144

142

201

249

337

395

17.2%

$367

$403

$432

$444

$451

$467

$481

3.2%

182

122

70

85

75

85

67

-21.2%

$5,250,000

$4,100,000

$4,925,000

$4,550,000

$5,439,000

$5,850,000

$8,000,000

36.8%

$150,638,022

$211,095,072

$214,887,454

$295,360,948

$369,507,709

$495,860,762

$601,981,445

21.4%

2012

2013

2014

2015

2016

2017

2018

% Change

76

98

109

114

124

143

188

31.5%

$339

$341

$385

$381

$408

$412

$409

-0.6%

188

244

125

125

103

103

82

-20.4%

Highest Price

$4,500,000

$7,000,000

$5,950,000

$4,650,000

$6,530,000

$6,000,000

$7,500,000

25.0%

Total Dollar Volume

$126,167,747

$161,378,148

$209,477,016

$191,195,514

$222,674,759

$253,882,779

$333,991,469

31.6%

2012

2013

2014

2015

2016

2017

2018

% Change

50

72

78

89

108

151

191

26.5%

$298

$324

$336

$341

$364

$379

$380

0.3%

325

225

147

167

138

149

129

-13.4%

Highest Price

$3,000,000

$2,550,000

$4,000,000

$2,750,000

$6,705,000

$3,600,000

$4,300,000

19.4%

Total Dollar Volume

$69,326,568

$95,258,704

$110,900,422

$124,816,315

$160,954,591

$211,963,193

$275,283,360

29.9%

2012

2013

2014

2015

2016

2017

2018

% Change

21

30

41

55

61

91

119

30.8%

$315

$333

$323

$354

$332

$390

$349

-10.4%

280

283

187

141

188

165

117

-29.1%

Highest Price

$2,600,000

$8,691,000

$2,755,000

$3,350,000

$2,914,000

$5,400,000

$5,100,000

-5.6%

Total Dollar Volume

$30,043,105

$51,320,622

$56,291,250

$74,952,720

$80,444,626

$129,748,352

$154,746,932

19.3%

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

ARAPAHOE

Total Dollar Volume

January through June Number of Properties Sold Average Price per Square Foot Average Days on Market

JEFFERSON

DOUGLAS

January through June Number of Properties Sold Average Price per Square Foot Average Days on Market

January through June Number of Properties Sold Average Price per Square Foot Average Days on Market

coloradomarketreports.com


BROOMFIELD

BOULDER

January through June

2012

2013

2014

2015

2016

2017

2018

% Change

Number of Properties Sold

100

118

122

178

221

241

302

25.3%

Average Days on Market

135

128

78

78

104

85

77

-9.4%

$4,400,000

$4,000,000

$4,495,000

$4,495,000

$3,950,000

$6,700,000

$5,500,000

-17.9%

$177,697,066

$180,830,421

$268,651,312

$268,651,312

$332,940,786

$373,626,210

$503,957,848

34.9%

2012

2013

2014

2015

2016

2017

2018

% Change

1

4

5

2

7

9

18

100.0%

Average Price per Square Foot

$276

$262

$309

$391

$393

$317

$343

8.3%

Average Days on Market

1,084

5

60

75

51

112

58

-48.2%

Highest Price

$1,200,000

$1,610,000

$1,310,099

$2,900,000

$2,100,000

$1,975,000

$3,375,000

70.9%

Total Dollar Volume

$1,200,000

$5,450,200

$5,721,059

$4,050,000

$10,300,000

$12,123,100

$25,263,500

108.4%

2012

2013

2014

2015

2016

2017

2018

% Change

0

1

5

7

7

10

14

40.0%

$0

$237

$274

$287

$301

$337

$303

-10.1%

0

155

105

107

74

165

86

-47.9%

Highest Price

$0

$1,020,000

$1,750,000

$1,429,000

$1,376,000

$1,250,000

$1,800,000

44.0%

Total Dollar Volume

$0

$1,020,000

$6,918,000

$8,854,000

$9,634,850

$11,360,500

$17,727,700

56.0%

Highest Price Total Dollar Volume

January through June Number of Properties Sold

ADAMS

January through June 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

MID -YEAR 2018 • COLORADOMARKETREPORTS.COM


Domestic and international buyers continue to narrow in on Colorado’s world-class resort communities, located an ideal two hours away from Denver Metro. Eagle County (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, etc.) and Summit County (Breckenridge, Frisco, Copper Mountain, Dillon, Silverthorne, etc.) provide luxury buyers with a sought-after lifestyle of enjoying the adventurous Colorado mountains, with close proximity to the bustling metropolis of Denver. Combined, the Resort Luxury Markets remain fairly steady for number of properties sold, however average days on market significantly decreased. In Eagle County, the luxury market experienced a high volume of activity January through June 2018, as the number of properties sold increased 8.9% and the average price per square foot also increased 3.4%. Average days on market decreased by a notable 21.8% to 208 days January through June 2018, an impressive time frame for the luxury resort market where homes typically stay on the market longer. For Summit County, average days on the market also decreased by 27.2%, from 184 days January through June of 2017, to an impressive 134 days in 2018. This significant decrease in the number of days on the market indicates consumers’ continued confidence in the resort luxury market and a willingness to act fast. Number of properties sold and total dollar volume did show a dip for January through June 2018, compared year-over-year. The luxury resort markets of Eagle County and Summit County remain robust and competitive, with continued growth projecting into Quarter 3 of 2018.

EAGLE

January through June

2012

2013

2014

2015

2016

2017

2018

% Change

124

119

161

163

156

190

207

8.9%

$872

$703

$833

$856

$850

$841

$870

3.4%

285

270

296

288

274

266

208

-21.8%

Highest Price

$14,100,000

$13,550,000

$19,000,000

$15,750,000

$14,000,000

$23,000,000

$18,500,000

-19.6%

Total Dollar Volume

$382,528,751

$268,389,100

$459,530,231

$454,338,449

$354,880,454

$539,492,173

$597,451,300

10.7%

2012

2013

2014

2015

2016

2017

2018

% Change

40

52

58

81

81

149

138

-7.4%

$342

$452

$440

$496

$431

$480

$462

-3.8%

269

280

244

202

230

184

134

-27.2%

$3,742,500

$3,400,000

$3,640,593

$3,700,000

$5,675,000

$4,200,000

$3,600,000

-14.3%

$61,654,928

$79,314,236

$89,713,292

$130,900,012

$134,930,773

$248,395,497

$210,477,699

-15.3%

Number of Properties Sold Average Price per Square Foot Average Days on Market

SUMMIT

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

coloradomarketreports.com


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:

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YEAR - END 2017 • COLORADOMARKETREPORTS.COM


The life you love.

livsothebysrealty.com | coloradomarketreports.com All data contained within this report is 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.