LIV SIR Luxury Report Year End 2017

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

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:

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.