2014 has passed, and the new year is upon us. With the end of the previous year bringing good news about the economy and luxury home sales, what might the next year have in store for us? Here’s a quick look at where the market might be headed as the calendar pushes into 2015 and the recent trends hopefully continue. These are not predictions so much as they are educated guesses on what might happen based on the market results from the previous year.
Will Strong Sales Continue?
2014 ended with some strong sales numbers. Both October and November saw an increase in Denver luxury homes over the previous year, and those numbers look like they will continue as December’s sales are tallied. The expected holiday slump was much lower than anticipated, which suggests a recovering American economy and a greater interest in the versatility that luxury housing offers. Odds are quite good that there will be something of a slump to start the year, as many who might have bought homes in January or February may have pushed for a December sale for tax reasons. However, those numbers are likely to start rising again by spring, which would signal another strong year for the luxury home market.
What about Luxury Home Prices?
One of the trends that stayed remarkably consistent in 2014 was the piece of luxury home sales, which averaged about what they did the year before and sometimes came out lower on the median. This could indicate one of two things. One possibility is that those who have higher-priced luxury homes are merely holding off on selling due to economic uncertainty or other factors. The other possibility is that housing prices at the higher end of the market have simple leveled out for the time being. The first option favors sellers, while the second favors buyers. Most likely, the truth lies somewhere in between. Whether you are a seller or a buyer, the key to the 2015 market will be patience.
One of the consistent parts of the rising market in 2014 is that the Denver metro area specifically has thrived. Denver itself does have some luxury homes, but the biggest market can be found in the surrounding region. Specific luxury subdivisions such as Centennial or the Pinery are more likely to have reasonably priced luxury homes for buyers. The fact that those who purchase homes in these communities also enter into a society of people with similar interests also helps to move these homes. If you are buying in 2015, these subdivisions are most likely to have reasonably priced and well-valued luxury homes. Sellers outside these areas should still have success, but may need to highlight special parts of their homes in order to get an edge.
One thing that seems certain is that 2015 promises a continuation of the good times from the previous year, at least at the beginning. A combination of patience, scrutiny, and careful selection of location should be enough to see anybody interested in the luxury home market through the new year.