As inventory continues to tighten in the Denver area, luxury homes are seeing prices drive higher and higher as well as days on the market dwindling significantly. The demand is certainly there in the area for luxury homes and the existing inventory just can’t keep up or suffice. There were 26 homes with a price tag over $1 million sold in January, down 16 percent from the 31 sold last year. But average prices jumped 14 percent year over year and days on the market plunged almost 50 percent, from 209 days in January 2013 to 108 days last month.
It still costs more to build luxury homes than to buy a resale, so many buyers prefer to purchase an existing home rather than take on the expense of having their own commissioned. However, as moving to Denver gains in popularity, they won’t really have much of a choice as available inventory becomes obsolete.