Colorado Residential Luxury Report - Quarter 1, 2017

Page 1

LIV

RESIDENTIAL LUXURY REPORT Quarter 1 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+ LIV Sotheby’s International Realty’s Residential Luxury Report compares Q1 2017 (January - March) 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 and Summit County. A full analysis of the performance of the resort luxury market can be found at the end of the report. The luxury market continues to demonstrate growth in Q1 2017, with luxury property sales within the seven counties of Denver metro represented in this report, rising 25.8%, from 264 homes sold in Q1 2016 to 332 homes sold in Q1 2017. Total dollar volume demonstrated a 20.6% increase year-over-year, reaching nearly $500M in Q1 2017, while average price per square foot decreased slightly from $414 in Q1 2017 to $394 in Q1 2017. Luxury home prices appreciated beyond expectations and mortgage rates remain low, despite market perceptions that these rates won’t last. The front range of Colorado has gained notoriety internationally as an excellent investment opportunity, fueling demand in the luxury market even more. Additionally, the spring selling season in the luxury sector is projected to demonstrate continued growth, as buyers are wanting to close on their new property in time for the impending summer months. In Denver metro, luxury buyers are seeking modern-style homes, in addition to more traditional Tudor-type architecture, which has been the go-to style of Denver’s luxury buyers traditionally. In Q1 2017, LIV Sotheby’s International Realty was credited as leveraging the highest luxury sale historically in Cherry Creek. In the resort luxury market, buyers continue to seek mountain-modern homes.

DENVER METRO (INCLUDING BOULDER) January through March

2011

2012

2013

2014

2015

99

126

153

163

218

$203

$244

$320

$347

$378

206

305

180

152

122

$4,800,000

$4,500,000

$7,000,000

$5,800,000

$4,115,000

$150,698,272

$189,936,271

$224,061,018

$251,909,786

$326,555,395

January through March

2016

2017

% Change

Number of Properties Sold

264

332

25.8%

$414

$394

-4.8%

ARAPAHOE

124

175

41.1%

BROOMFIELD

$6,530,000

$6,000,000

-8.1%

$410,887,545

$495,682,651

20.6%

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

Average Price per Square Foot Average Days on Market Highest Price Total Dollar Volume

INCLUDED COUNTIES: ADAMS BOULDER DENVER DOUGLAS JEFFERSON

RESIDENTIAL LUXURY REPORT QUARTER 1 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 March

2011

2012

2013

2014

2015

2016

2017

% Change

31

33

44

51

68

93

122

31.2%

Average Price per Sq. Ft.

$366

$345

$400

$420

$433

$475

$470

-1.0%

Average Days on Market

238

215

122

100

118

91

93

2.2%

$2,150,000

$3,100,000

$4,100,000

$4,925,000

$3,522,019

$5,438,873

$2,750,000

-49.4%

$43,547,000

$45,126,908

$64,740,735

$78,332,715

$98,522,988

$147,524,280

$168,822,193

14.4%

Number of Properties Sold

Highest Price Total Dollar Volume

ARAPAHOE COUNTY January through March

2011

2012

2013

2014

2015

2016

2017

% Change

24

29

36

27

43

37

57

54.1%

Average Price per Sq. Ft.

$311

$341

$348

$372

$377

$404

$402

-0.5%

Average Days on Market

158

182

177

98

125

119

121

1.7%

Highest Price

$4,800,000

$4,500,000

$7,000,000

$5,850,000

$4,115,000

$6,530,000

$6,000,000

-8.1%

Total Dollar Volume

$38,614,686

$55,203,449

$60,390,657

$47,514,476

$68,006,970

$71,390,129

$108,963,967

52.6%

Number of Properties Sold

DOUGLAS COUNTY January through March

2011

2012

2013

2014

2015

2016

10

18

29

25

27

46

48

4.3%

Average Price per Sq. Ft.

$284

$277

$326

$349

$364

$344

$351

2.1%

Average Days on Market

481

180

321

161

178

139

175

25.9%

Highest Price

$2,300,000

$2,150,000

$1,776,186

$3,525,000

$2,650,000

$2,875,000

$3,000,000

4.3%

Total Dollar Volume

$14,958,000

$23,812,514

$37,325,522

$34,257,272

$40,658,037

$63,565,405

$65,104,171

2.4%

Number of Properties Sold

2017 % Change

JEFFERSON COUNTY January through March

2011

2012

2013

2014

2015

2016

9

6

6

12

18

22

26

18.2%

Average Price per Sq. Ft.

$257

$228

$349

$340

$321

$354

$370

4.6%

Average Days on Market

312

287

324

162

166

236

232

-1.7%

$1,546,200

$1,455,000

$2,500,000

$2,755,000

$1,425,000

$2,650,000

$5,400,000

103.8%

$11,235,003

$7,692,500

$9,095,122

$16,382,000

$21,838,400

$31,467,397

$40,156,531

27.6%

Number of Properties Sold

Highest Price Total Dollar Volume

RESIDENTIAL LUXURY REPORT QUARTER 1 2017 | COLORADOMARKETREPORTS.COM

2017 % Change


LUXURY MARKET | MARKETS BY COUNTY

BOULDER COUNTY January through March

2011

2012

2013

2014

2015

2016

2017

% Change

25

39

35

44

58

63

75

19.0%

253

185

152

179

107

103

103

0.0%

$4,150,000

$3,100,000

$2,300,000

$4,000,000

$3,400,000

$3,100,000

$2,550,000

-17.7%

$42,343,583

$56,900,900

$48,853,782

$69,703,363

$90,979,000

$90,105,756

$107,410,789

19.2%

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

BROOMFIELD COUNTY January through March

2011

2012

2013

2014

2015

2016

2017

% Change

0

1

2

2

1

1

1

0.0%

Average Price per Sq. Ft.

$0

$275

$261

$318

$477

$313

$367

17.1%

Average Days on Market

0

1084

6

113

6

115

301

161.7%

Highest Price

$0

$1,200,000

$1,610,200

$1,170,960

$2,900,000

$1,260,000

$1,975,000

56.7%

Total Dollar Volume

$0

$1,200,000

$2,635,200

$2,220,960

$2,900,000

$1,260,000

$1,975,000

56.7%

2011

2012

2013

2014

2015

2016

2017

% Change

0

0

1

2

3

4

3

-25.0%

Average Price per Sq. Ft.

$0

$0

$237

$282

$293

$594

$395

-33.5%

Average Days on Market

0

0

155

253

151

67

201

200.0%

Highest Price

$0

$0

$1,020,000

$1,750,000

$1,385,000

$3,773,078

$1,250,000

-66.9%

Total Dollar Volume

$0

$0

$1,020,000

$3,499,000

$3,650,000

$7,787,078

$3,250,000

-58.3%

Number of Properties Sold

ADAMS COUNTY January through March Number of Properties Sold

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 QUARTER 1 2017 | COLORADOMARKETREPORTS.COM


RESORT LUXURY MARKET - $1M+ The resort luxury market remained robust in Q1 2017 with several eye-popping transactions taking place within Vail and Beaver Creek early in the year, including the sale of 107 Rockledge Road, an 11,509 square foot ski-in, ski-out residence that has set a record high for the sale of a single-family home in the Vail Valley at $23M. LIV Sotheby’s International Realty’s Residential Luxury Report compares Q1 2017 (January - March) statistics, to that of 2016, for single family homes and condos priced $1M and above in the Resort areas the brokerage services; Summit County (Breckenridge, Frisco, Copper, Dillon, Silverthorne), and Eagle County (Vail Valley, Avon, Beaver Creek, Bachelor Gulch, Cordillera, etc.) The Vail Valley saw a higher volume of activity in the luxury market, with the number of properties sold increasing 27.9% from 61 properties sold in Q1 2016, to 78 properties sold in Q1 2017. Average price per square foot held at $860, and average days on the market decreased 10.1% from 307 days on market in Q1 2016 to only 276 days in Q1 2017, an improved average time on market for home buying in the resort luxury sector. In Summit County, luxury sales demonstrated significant increase with 72 properties sold in Q1 2017, over 35 properties sold in Q1 2016, an astonishing 105.7% increase. Average price per square foot increased 9.6%, from an average price of $471 in Q1 2016 to $516 in Q1 2017. Average days on the market decreased 44% from 316 days on market in Q1 2016 to only 177 days in Q1 2017, an excellent time frame in the resort luxury sector. 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 one of the most sought after resort destinations, 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 enter the spring selling season.

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

2011

2012

2013

2014

2015

2016

2017

% Change

56

60

51

72

83

61

78

27.9%

Average Price per Sq. Ft.

$899

$921

$723

$784

$842

$881

$860

-2.4%

Average Days on Market

381

322

279

361

310

307

276

-10.1%

$10,500,000

$14,100,000

$13,550,000

$11,200,000

$10,250,000

$6,735,000

$23,000,000

241.5%

$160,659,775

$188,097,500

$120,407,850

$168,822,249

$203,788,606

$135,883,337

$241,787,875

77.9%

Number of Properties Sold

Highest Price Total Dollar Volume

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

2011

2012

2013

2014

2015

2016

2017

% Change

20

24

24

29

34

35

72

105.7%

Average Price per Sq. Ft.

$448

$231

$528

$462

$500

$471

$516

9.6%

Average Days on Market

314

268

178

198

225

316

177

-44.0%

$2,685,000

$3,421,123

$2,700,000

$3,640,593

$3,500,000

$5,675,000

$4,200,000

-26.0%

$28,236,544

$36,155,928

$40,945,989

$47,325,542

$55,676,797

$60,487,040

$123,325,600

103.9%

Number of Properties Sold

Highest Price Total Dollar Volume

RESIDENTIAL LUXURY REPORT QUARTER 1 2017 | COLORADOMARKETREPORTS.COM


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