So far in 2011, there have been 39 sales of residential real estate in Boulder County with prices greater than $1,000,000. We are just three sales behind last year at the same point and in many ways I feel more optimistic about the rest of the year than I did a year ago. There are still challenges in the luxury market in the Boulder area and over the past decade the luxury market has matured, boomed and now it is ultra competitive. Here are a few facts that will be helpful in explaining the situation.
- Currently there are 313 properties listedin Boulder County. This represents a 31 month supply of homes. That is, if we could freeze the current listings and have no new ones hit the market, it would take 2 years, 7 months to sell all of the current listings if the sales rate continued at the same pace.
- Of those 313 active listings over $1 million, 33 are currently under contract waiting to close. 10.5% under contract percentage for the luxury market is pretty strong.
- Of the 39 homes that have sold so far this year, 18 closed between $1 and $1.5 million; 14 were between $1.5 and $2 million and 7 were over $2 million.
- The highest price paid in Boulder County this year was $4,150,000 for a 10,000 square foot mansion on Mapleton Hill.
What’s good about the luxury market right now: Luxury real estate is purchased by people with assets and assets (as measured by the stock market) have increased recently making potential buyers feel more wealthy. We are coming into the summer months which is traditionally a strong time for luxury sales in Boulder. Many people come to visit and fall in love.
What’s tough about the luxury market right now: Buyers are in a strong negotiating position, average negotiations for the sales that have successfully closed so far this year have averaged 7.22% off of list price. This is nearly double the overall average. Too many listings, not enough buyers. Selling any home is a competitive process right now, that is especially true for luxury listings. In order to sell a home needs to be well priced, well staged, in good condition, well located and have a little luck thrown in for good measure.
We have some wonderful listings that fall into this category. Check out: