Luxury homes saw a sudden surge in demand in the Denver metro area last month.
According to the latest report from the Denver Metro Association of Realtors (DMAR), a record-breaking 179 homes priced over $1 million sold in May. Almost 38% more homes in that category sold this May over May of 2016 – and 21% more sold in May over April.
“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,” Elaine Stucy, DMAR Market Trends Committee member told Forbes magazine. “This is a stunning trend in a month where traditionally the greatest number of homes come into the market.”
While this is surely a development to watch, the hottest homes in the Denver market remain in the lower price ranges. The biggest demand is for homes selling for $300,000 to $399,000. They are also among the least available. Homes priced below $500,000 comprise only 41% of the available listings on the market, Steve Danyliw, chairman of the DMAR Market Trends Committee, told Forbes. “The competition for homes under $500,000 is fierce as this price segment is below one month of inventory. Considering this price range accounts for 74% of all sales in metro Denver, homebuyers should expect continued competition.”
Meanwhile, a study by real estate website HomeLight offers interesting insight into which Denver homes are selling the fastest—not based on price, but rather on architectural style.
HomeLight found that bungalows, “the smallest homes in Metro Denver,” are selling the fastest. “Bungalows, a smaller variation of Craftsman style homes, developed out of the Arts and Crafts movement of 1890-1910,” notes HomeLight. “Bungalows in Denver were primarily built from 1900 through 1930 in direct response to a fascination with the style, which originated in Britain.” Modern buyers appreciate their solid construction and quaintness.
This style is closely followed in demand by Tudors, which also originated from the Arts and Crafts movement. They “started popping up throughout Metro Denver in between 1910 and 1920,” notes HomeLight. “You’ll find Tudors concentrated in the Park Hill neighborhood because the area developed at the same time the Tudor style was popular: most homes in Park Hill were built from 1920-1930.
“Tudor homes also concentrate in the Wash Park and Belcaro neighborhoods. These areas, like the Park Hill neighborhood, were erected in the early 20th century, when Tudor styles were at the height of popularity in Denver.”
Interestingly, Tudors command the highest average price per square foot, according to HomeLight.
Other styles noted in the study are listed below, from greater to lesser popularity:
For photos of each style and more information, click here.