DENVER – May was yet another record-breaking month for home sales in the Denver metro area, thanks in large part to an increase in luxury home transactions.
The average price of homes that sold last month climbed to a record $449,736, according to the latest report from the Denver Metro Association of Realtors, up 2.84 percent compared to April and 9.83 percent compared to May 2016.
Sales in the luxury market – homes that sell for $1 million or more – hit a new record as well. According to the DMAR report, 179 homes in that price range sold and closed in May, marking an increase of nearly 38 percent compared to the same time last year.
So far in 2017, sales of luxury homes have totaled more than $900,000,000, whereas last year that number hadn’t even reached $700,000,000.
“By this time next month, sales in the luxury market of homes priced over $1 million will likely surpass one billion dollars year to date,” said Elaine Stucy, a Denver-area real estate agent and member of DMAR’s Market Trends Committee. “This is a stunning trend in a month where traditionally the greatest number of homes come into the market.”
It’s not unusual to see home prices climb this time of year, but as prices hit new records each month, it’s becoming increasingly difficult to find affordable properties. Homes priced below $500,000 account for 74 percent of all sales but properties in that price range made up just 41 percent of all the available homes last month.
There is some good news, though: Overall, housing inventory was up month-to-month, with a total of 5,895 active listings. That means there were more homes to choose from, but inventory is still far below the historical average of 16,296 listings for May.
The most expensive home sold last month was a five-bedroom, nine-bathroom home in Denver that sold for $5,850,000.